THE  FUTURE  OF 
SOUTH  AMERICA 

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RO  GER,  yv.  BAB  S  ON 


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THE  FUTURE  OF  SOUTH  AMERICA 


CopyHght  by  Underwood  &  Underuooi 


AMERICAN  GOODS  IN  THE  HARBOR  OF   CALLAO,  PERU 

Frontispiece 


THE  FUTURE 
OF  SOUTH  AMERICA 


BY 


ROGER   W.  BABSON 


ILLUSTRATED 


NON-RFFERT 


BOSTON 

LITTLE,  BROWN,  AND  COMPANY 

1917 


HF 
3050 

BI5 


Copyright,  1915, 
By  Roger  W.  Babson. 

All  rights  reserved 


DEDICATED 

TO 

CHARLES  H.  GATES 


PREFACE 

Owing  to  the  many  exceedingly  useful  books  on 
Latin  America  already  published,  I  hesitate  somewhat 
in  preparing  another.  Most  if  not  all  of  the  books  now 
issued,  however,  are  written  either  for  the  traveler  or 
the  historian,  without  special  appeal  to  commercial 
and  industrial  interests.  In  view  of  this  I  have,  during 
the  past  few  years,  been  systematically  collecting  in- 
formation regarding  Latin  America  which  should  be  of 
service  to  those  looking  at  this  continent  from  a  money- 
making,  rather  than  from  an  historical,  point  of  view. 

Although  I  have  personally  visited  most  of  the 
countries  of  South  America,  I  do  not  pose  as  a  traveler. 
My  visits  have  been  short,  on  strictly  business  mis- 
sions, and  some  of  the  cities  about  which  I  have  written 
pages  I  have  been  in  but  a  short  time.  Therefore  I  do 
not  attempt  to  compete  with  the  seasoned  traveler  nor 
the  man  who  has  spent  many  years  in  these  southern 
republics. 

On  the  other  hand,  experience  with  statistics  has 
taught  me  that  often  the  man  who  sees  countries  at  a 
distance,  one  in  comparison  with  another,  gets  a  truer 
perspective  than  one  who  has  spent  his  life  in  a  given 
spot.  Hence,  I  believe  that  this  book  will  be  of  great 
service  to  men  who  are  looking  for  real  opportunities 
and  who  are  comparing  in  their  own  minds  Latin- 

vii 


viii  PREFACE 

American  opportunities  with  those  in  other  parts  of 
the  world.  I  have  tried  to  be  neither  pessimistic  nor 
optimistic  regarding  these  countries  to  the  south  of 
us,  but  to  tell  in  a  simple  and  frank  manner  what 
statistics  show  the  future  of  these  countries  is  to  be, 
for,  after  all,  it  is  the  future  in  which  we  are  interested, 
and  not  the  present  or  the  past. 

In  conclusion,  I  wish  to  express  my  deep  apprecia- 
tion to  the  presidents  and  other  officials  of  these  vari- 
ous countries  who  were  so  kind  to  me,  to  the  ambas- 
sadors and  ministers,  representing  both  our  own  country 
and  South  America,  and  especially  to  Mr.  John  Bar- 
rett and  our  commercial  attaches  and  consuls.  Cer- 
tainly we  all  owe  a  great  debt  of  gratitude  to  these  men 
who  represent  us  in  strange  and  distant  lands.  May 
we  do  more  for  them  and  may  we  show  our  apprecia- 
tion in  more  substantial  ways  than  this. 

R.  W.  B. 

June,  1915. 


CONTENTS 

Chapter  Paqb 

Preface vii 

I.     The  Problem  of  South  America     .  1 

II.     Cuba 10 

III.  Porto  Rico 36 

IV.  Santo  Domingo  and  Hatti     ....  47 
V.     Other  Islands  of  the  Caribbean    .  60 

VI.     Panama      72 

VII.     Venezuela 97 

VIII.     Colombia 113 

IX.     Ecuador 118 

X.     Peru 127 

XI.     Bolivia 160 

XII.     Chile 165 

XIII.  The  Strait  of  Magellan 209 

XIV.  Argentina 214 

XV.  Paraguay   260 

XVI.  Uruguay 267 

XVII.     Brazil 287 

XVIII.     IMistakes    in    Our    Latin-American 

Trade  Relations 335 

XIX.     South  American  Investments   .    .    .  346 

Statistics 358 

Index      383 


LIST   OF   ILLUSTRATIONS 

American   Goods   in  the   Harbor  of  Callao, 

Peru Frontispiece 

FACING  PAGE 

Havana  Harbor  from  Morro  Castle 10 

Indian  Dugouts  on  the  Chagres  River  bringing 

Bananas  to  Gatun,  Panama 78 

Hauling  Carloads  of  Cane  into  the  Sugar  Mill, 

Caracas,  Venezuela 110 

Cacao   growing    on    the   Tree,    La   Clementina, 

Ecuador 124 

Sacks  of  Ore  on  the  Railway  Platform,  Cerro 

de  Pasco,  Peru,  and  the  Mine  from  which  it 

came 140 

Oroya  Railway,  Peru 146 

View  of  ^'alparaiso,  Chile 180 

Bird's-eye  View  of  Punta  Arenas,  Chile,  the  most 

southern  Towti  in  the  World 210 

Avenida  de  IMayo,  the  main  Street  of  Buenos  Aires    218 

A  Cattle  Train  in  Argentina 230 

Settlers  branding  Cattle,  Paraguay 260 

One  of  the  busy  Streets  of  Montevideo,  Uruguay  268 
Avenida  do  Rio  Branco,  the  main  Street  of  Rio 

de  Janeiro 304 

Bird's-eye  View  and  Harbor  of  Santos,  Brazil  .  .  310 
Bird's-eye  View  of  Bahia,  Brazil,  showing  the 

Business  Section  and  the  Harbor 314 


THE  FUTURE  OF  SOUTH 
AMERICA 

CHAPTER  I 

The  Problem  of  South  America 

However  much  one  may  read  about  a  continent  or 
even  a  single  country,  it  is  impossible  to  get  the  whole 
story.  The  all-important  atmosphere  of  a  place  can  be 
obtained  and  understood  only  by  a  personal  visit,  and 
even  then  only  after  careful  study.  For  some  years  I 
have  been  methodically  studying  South  America,  and 
have  now  reached  definite  conclusions  about  its  possi- 
bilities and  some  of  the  difficulties  which  present  them- 
selves in  establishing  trade  relations  with  the  people  of 
Latin  America. 

We  show  great  ignorance  in  speaking  of  South 
America  as  a  unit.  It  is  too  large  and  varied  to  refer 
to  in  any  such  term.  Even  one  country  —  Brazil  — 
is  larger  than  the  United  States,  and  its  coast  line 
would  stretch  from  Boston  to  Liverpool.  Yet  there 
are  ten  different  nations  in  South  America  —  not 
counting  the  Guianas. 

The  various  parts  of  the  country  present  distinct 
problems  and  possibilities.  The  table-lands  of  the 
north,  which  include  Venezuela  and  Colombia,  are 
Vjeautiful,  but  their  utilization  is  a  matter  of  the 
future.  Their  good  lands  are  inaccessible,  and  until 
means  of  travel  are  developed,  it  will  not  be  practi- 
cable for  us  or  our  children  to  use  these  lands  and  raise 


2      THE  FUTURE  OF  SOUTH  AMERICA 

cattle,  coffee,  and  the  like.  Excepting  for  a  few  cities, 
the  prospects  of  trade  in  the  north  are  slight  and  may 
be  forgotten  for  the  moment. 

The  west  coast,  including  Ecuador,  Peru,  and  north- 
ern Chile,  is  rich  in  minerals  and  nitrates,  but  the 
agricultural  possibilities  depend  upon  irrigation.  Con- 
sidering the  vast  unused  areas  in  other  districts  which 
do  not  need  irrigation,  it  is  obvious  that  this  stretch 
of  country  must  wait.  Hence,  with  the  exception  of 
Lima,  Antofagasta,  and  two  or  three  other  cities,  the 
west  coast,  north  of  Valparaiso,  may  now  be  ignored 
for  sales  opportunities.  This  is  especially  true  so  long 
as  the  present  sanitary  and  political  conditions  exist. 

Valparaiso  and  Santiago  are  good  cities.  Valparaiso, 
next  to  San  Francisco,  is  the  largest  western  port  on  the 
Pacific  Ocean.  Although  a  breakwater  is  under  con- 
struction, the  harbor  is  now  only  an  open  roadstead, 
and  ships  must  go  out  to  sea  when  Certain  storms 
arise.  Moreover,  the  city  is  built  on  the  side  of  a  moun- 
tain, which  together  with  the  prospects  of  earthquakes 
makes  building  rather  unattractive.  Santiago,  sit- 
uated less  than  one  hundred  miles  inland,  is  an  espe- 
cially pleasing  city.  These  two  places  combined  offer  a 
good  market  for  our  goods. 

The  south  of  Chile  is  a  fine  country  —  fertile,  rich 
in  timber,  and  with  some  coal.  There  are  also  good 
rivers  suitable  for  both  irrigation  and  water  power. 
But  with  all  these  advantages  combined,  there  is  not 
a  great  total.  The  valley  is  less  than  one  hundred 
miles  wide,  and  the  southernmost  part  is  fit  only  for 
sheep  raising. 

The  east  coast  of  South  America  is  another  story. 
Every  inch  of  it  is  fertile,  and  its  vastness  surpasses 


THE  PROBLEM  OF  SOUTH  AMERICA  3 

comprehension.  A  large  part  of  the  east  coast  is  low 
and  huinid;  the  south  is  too  wet  and  the  north  is  too 
hot.  There  are  insects  of  all  sizes  and  varieties,  and 
snakes  of  known  and  unknowTi  kinds.  The  natives 
vary  from  the  high-grade  Argentine  scholar  to  the 
naked,  savage  Brazilian  Indian.  However,  with  all 
these  difficulties,  I  am  a  great  believer  in  the  east  coast 
of  South  America,  not  only  for  our  children  and  grand- 
children, but  for  the  present  generation.  The  section 
from  Bahia  Blanca,  Argentina,  to  Rio  de  Janeiro, 
Brazil  (fifteen  hundred  miles),  extending  about  four 
hundred  miles  westward,  is  a  gold  mine.  It  is  a  tract 
as  large  as  all  of  our  country  east  of  the  Mississippi, 
and  is  worthy  of  careful  study. 

This  area  includes  the  best  part  of  Argentina,  the 
whole  of  Uruguay,  most  of  Paraguay,  and  the  southern 
part  of  Brazil.  Argentina  is  the  wonder  of  America. 
Its  farms  are  beyond  description,  its  cities  are  the  most 
active  imaginable.  It  should  become  a  great  customer 
for  our  goods.  Uruguay  is  a  small  country,  but  very 
much  alive.  Paraguay  is  rich  in  timber  and  cattle 
lands,  and  as  it  is  inhabited  only  by  Indians,  the  lands 
are  very,  very  cheap.  These  countries  to-day  have 
little  manufacturing  to  speak  of,  and  as  for  years  to 
come  they  will  be  great  exporters  of  grain,  cattle,  and 
their  by-products,  they  will  also  be  great  importers  of 
manufactured  goods.  Every  live  United  States  manu- 
facturer should  have  branches  in  this  section,  for  it  is 
on  the  verge  of  a  great  awakening. 

In  this  section  I  also  include  southern  Brazil,  which 
is  my  favorite  land  of  all,  so  far  as  climate  goes.  Here 
is  a  section  eight  hundred  miles  long  and  four  hundred 
miles  wide,  situated  on  a  high  plateau.    It  is  healthy, 


4      THE  FUTURE  OP  SOUTH  AMERICA 

cool,  and  compares  favorably  with  any  section  of  any 
land.  It  is  the  southern  California  of  South  America. 
Sao  Paulo  is  its  capital  and  is  also  the  center  of  the 
manufacturing  industry  of  South  America,  with  textile 
mills,  shoe  factories,  and  other  plants.  It  is  now  a  city 
of  about  four  hundred  thousand  people  and  will  soon 
have  one  million  inhabitants. 

The  only  safe  way  to  invest  money  or  to  sell  goods 
in  South  America  is  to  arrange  to  have  some  person  in 
whom  you  have  confidence  go  there  and  live.  There 
is  nothing  in  flying  trips  and  long-distance  control. 
If  the  people  of  the  United  States  hope  to  do  anything 
permanent  in  South  America,  they  must  adopt  the 
German  apprentice  system,  under  which  the  best 
young  men  go  to  foreign  fields  for  periods  of  ten  or 
more  years,  often  marrying  native  women  and  some- 
times settling  down  there  for  life.  Our  hasty  methods 
have  already  made  us  looked  down  upon  as  "four- 
flushers  and  bluffers."  We  ought  either  to  stop  talk- 
ing about  South  America,  or  send  our  young  men  down 
there  to  stay  and  solve  the  problems  seriously,  as  do 
the  young  men  of  Germany  and  England. 

Concerning  the  great  resources  of  South  America,  I 
am  fully  convinced.  Concerning  the  great  opportuni- 
ties there,  I  have  no  doubts.  The  only  question  which 
troubles  me  is  whether  or  not  we  —  a  democratic 
people  with  a  democratic  form  of  government  —  can 
develop  a  successful  foreign  trade  under  present  con- 
ditions, when  force  rules  the  world.  The  English  have 
developed  great  foreign  trade  at  the  point  of  their  guns. 
The  Germans  have  developed  great  foreign  trade 
through  subsidies  and  trusts.  The  whole  foreign  trade 
game  —  as  played  to-day  —  is  contrary  to  the  fun- 


THE  PROBLEM  OF  SOUTH  AMERICA      5 

damental  principles  of  democracy.  Considering  that 
our  government  ^^-ill  probably  become  more  rather 
than  less  democratic,  and  that  the  power  of  the  masses 
\\-ill  gradually  become  greater,  while  the  influence  of 
capital  may  consequently  become  less,  what  is  the 
outlook  for  our  foreign  trade  and  investments?  Eng- 
land and  Germany  have  adopted  "dollar  diplomacy" 
accompanied  by  the  "big  stick."  Will  we?  I  think 
not. 

There  are  two  things  which  we  must  absolutely 
have  to  develop  foreign  trade  with  Latin  America: 
protection  for  our  investments  abroad  so  that  we  can 
safely  extend  credits  and  start  banks,  and  freedom 
from  dependence  on  foreign  ships,  cables,  and  means 
of  exchange. 

There  are,  however,  other  problems  connected  with 
South  America  which  one  cannot  understand  fully  until 
one  has  been  there. 

Until  really  studying  the  situation  and  the  country 
for  a  long  time,  I  had  not  realized  the  importance  of 
the  Spanish  language  to  citizens  of  the  United  States. 
Practically  all  of  our  island  possessions  have  come  from 
Spain;  our  neighbors  talk  Spanish  or  English;  and  yet 
our  schools  are  content  to  teach  French  and  German. 
Spanish  is  to  be  a  great  world  language,  and  it  should 
be  placed  on  a  par,  at  least,  in  our  schools  with  other 
languages,  to  prepare  our  children  for  the  great  Latin- 
American  development  which  is  sure  to  come. 

What  a  great  impetus  it  would  give  to  industry  in 
the  United  States  if  all  labor  organizations  would  real- 
ize that  increased  trade  must  come  before  increased 
wages  can  be  maintained!  Permanently  to  raise 
wages  there  must  be  an  increased  demand  for  labor, 


6       THE  FUTURE  OF  SOUTH  AMERICA 

more  mills  must  be  built,  and  more  men  employed. 
Thus  the  most  fundamental  work  which  labor  organi- 
zations can  do  to  bring  about  their  ends  is  to  further 
every  plan  for  extending  United  States  trade  and  sell- 
ing United  States  goods  throughout  the  world.  For 
this  reason  the  working  people  should  favor  the  teach- 
ing of  Spanish  in  our  schools,  the  study  of  markets 
and  products,  and  should  indorse  all  appropriations 
for  extending  foreign  trade.  Our  education  is  very 
provincial.  The  average  boy  leaving  our  public  schools 
knows  no  language  except  English;  he  has  not  had  a 
lesson  in  economics,  while  his  knowledge  of  industrial 
history  is  nil. 

I  had  always  understood  that  care  must  be  exercised 
when  dealing  in  the  money  of  South  American  coun- 
tries, but  until  having  actual  experience,  I  had  never 
realized  how  the  currency  of  the  different  nations 
varies,  and  how  much  the  currency  of  certain  countries 
has  depreciated.  These  facts  were  first  really  brought 
home  to  me  in  Peru.  I  had  been  taught  that  a  sol,  the 
name  of  the  Peruvian  dollar,  is  exactly  one  tenth  of  an 
English  pound.  Ten  soles  should,  therefore,  make  a 
pound  sterling,  approximately  $4.86  in  gold.  When, 
after  considerable  difficulty,  I  cashed  an  express  check, 
I  was  considerably  surprised  at  receiving  twelve  soles, 
while  some  of  my  companions  did  even  better  and 
received  more. 

In  Bolivia,  where  the  boliviano,  as  the  Bolivian  dol- 
lar is  known,  is  supposed  to  be  one  twelfth  of  an  Eng- 
lish pound,  one  receives  over  sixteen  bolivianos  for  a 
United  States  five-dollar  gold  piece.  In  Chile  condi- 
tions are  even  worse.  I  received  sixty-four  dollars  of 
Chilean  paper  for  a  ten-dollar  gold  piece. 


THE  PROBLEM  OF  SOUTH  AMERICA  7 

The  following  table  shows  the  relations  of  the  money 
of  ten  South  American  nations: 


Countr>' 

Name  of  dollar 

Approximate 

theoretical  value 

in  United  States 

money 

Approximate 

value  in  United 

States  gold  in 

1915 

Bolivia 

Boliviano 

Bolivia 

Peso 

Sucre 

Sol 

Peso  (paper) 

Peso  (paper) 

Milreis 

Peso 

Peso 

$0.41 
.19 
.01 
.48 
.48 
.361 
.43 
.54 
.09 
1.03 

$0.28-.32 

Venezuela 
Colombia  . 
Ecuador     . 
P(>ru  .    .    . 

.18 
.009 
.45 
.44 

Chile      .    . 

.15-.20 

Argentina 
Brazil     .    . 
Paraguay  . 
Uruguay    . 

.42-.44 

.28-.32 

.06 

1.00 

1  Theoretical;  .22  is  the  better  figure. 


Panama  and  Cuba  use  United  States  money;  Ja- 
maica and  the  other  English  islands  use  English  cur- 
rency. 

It  will  be  seen  that  all  these  leading  South  American 
nations  have  entirely  different  monetary  systems. 
Some,  like  Argentina,  secure  their  systems  by  gold; 
others,  like  Peru,  base  theirs  on  silver;  while  still 
others,  like  Chile,  simply  issue  paper  currency  when 
the  government  needs  money  and  redeem  this  cur- 
rency when  the  government  has  a  surplus.  In  other 
words,  the  Chilean  notes  are  simply  non-interest-bear- 
ing bonds  having  uncertain  security. 

The  money  of  these  different  countries  should  be 
standardized.  The  monetary  systems  of  all  the  Latin- 
American  countries  should  be  on  a  gold  basis,  and  the 
dollars  of  all  countries  should  be  on  the  same  scale. 


8      THE  FUTURE  OF  SOUTH  AMERICA 

This  does  not  mean  that  these  different  countries 
should  have  the  same  currency  or  be  obhged  to  accept 
the  currency  of  another  country.  I  only  say  that  their 
moneys  should  be  based  upon  gold,  and  their  dollars 
should  be  interchangeable  or  multiples. 

Not  only  are  the  monetary  systems  of  these  coun- 
tries at  sixes  and  sevens,  but  most  of  them  are  directly 
or  indirectly  based  upon  the  English  pound  sterling. 
Argentine  five-dollar  gold  pieces  are  interchangeable 
with  English  sovereigns.  In  short,  it  is  difficult  to- 
day to  find  anything  which  the  systems  have  in  com- 
mon, but  the  English  pound  is  the  nearest  common 
denominator.  So  long  as  this  state  of  affairs  continues, 
it  is  discouraging  to  talk  about  "dollar  exchange." 
The  dollar  of  every  country  has  a  different  value  and 
none  of  them  bears  any  fixed  relation  to  our  own  dollar. 
Not  only  this,  but  the  banks,  controlled  by  the  English 
and  Germans,  make  their  chief  profit  from  buying  and 
selling  exchange.  To  substitute  ''dollar  exchange" 
for  sterling  exchange  might  close  up  one  half  the  banks 
in  South  America.  I  do  not  mean  to  suggest  that 
"dollar  exchange"  is  not  possible  and  ideal.  It  is 
both,  and  such  exchange  is  already  in  existence.  I  do 
say,  however,  that  other  things  are  now  needed  more 
and  that  "dollar  exchange"  will  not  become  practicable 
until  there  are  more  United  States  banks  in  South 
America. 

Like  every  unsophisticated  North  American,  I  had 
supposed  that  revolutions  were  at  an  end  in  South 
America.  The  bankers  in  New  York  and  the  diplo- 
mats at  Washington  have  been  assuring  us  for  years 
that  political  conditions  in  South  America  are  all 
settled,  and  that  no  more  revolutions  will  occur.    That 


THE  PROBLEM  OF  SOUTH  AMERICA      9 

is  also  what  they  told  us  about  Mexico.  My  trips  to 
South  America  have  taught  me  that  the  days  of  revolu- 
tions are  not  over.  I  had  also  been  fooled  by  the 
South  American  use  of  the  term  "Republic."  Many 
of  these  South  American  countries  are  controlled  in  a 
waj''  which  I  do  not  care  to  describe.  The  elections  are 
a  f:irce  in  many  instances,  and  the  best  men  are  usually 
outright  dictators.  In  fact,  with  their  present  methods 
of  elections,  I  fail  to  see  how  a  change  in  administra- 
tion can  be  brought  about  there  except  tlirough  a 
revolution.  Up  to  the  present  time,  these  revolutions 
have  not  been  harmful  to  foreign  interests,  but  the 
foreigners  think  they  are  compelled  to  pay  graft  to 
live. 

In  conclusion,  I  want  to  add  that  the  people  of  the 
United  States  are  not  getting  the  truth  about  Latin 
America.  Only  the  good  news  is  sent  out.  Still  I  am 
not  bearish  on  Latin  America;  I  believe  that  it  offers 
great  opportunities  to  manufacturers,  merchants,  and 
investors  of  the  United  States,  but  I  do  want  my  readers 
to  proceed  with  their  eyes  open. 


CHAPTER  II 
Cuba 

The  first  surprise  one  always  gets  when  entering  the 
harbor  of  Havana  (or  Habana,  as  the  Cubans  spell  it) 
is  the  architecture  of  the  island.  We  are  apt  to  think 
of  Cuba  as  new  territory  and  of  Havana,  Santiago,  and 
Matanzas  as  "coming  cities."  When  we  go  to  Spain, 
we  expect  to  see  low  stone  houses,  with  red-tiled  roofs 
and  pink  or  blue  walls.  We  do  not,  however,  think  of 
seeing  a  quaint  Spanish  city  within  three  days'  sail 
from  New  York. 

''How  strange  and  picturesque  everything  looks!" 
remarked  one  of  a  group  of  American  business  men,  as 
we  steamed  into  the  beautiful  harbor  of  Havana  and 
passed  the  famous  Morro  Castle.  "We  did  not  expect 
to  see  such  old  Spanish  architecture  down  here.  Why, 
one  would  think  we  were  entering  the  old  port  of 
Cadiz,  Spain,  or  passing  along  the  coast  of  Italy!" 

Yes,  this  group  of  American  millionaires,  owners  of 
great  -mills  in  the  United  States  —  men  who  are  the 
heads  of  great  corporations  —  had  never  before  real- 
ized that  Cuba  is  almost  as  old  as  Spain  itself!  In  fact, 
Cuba  is  simply  "Little  Spain,"  while  Havana  and  the 
other  Cuban  cities  are  as  truly  Spanish  as  are  the 
ancient  towns  of  the  old  world,  about  which  Columbus 
wandered  when  a  boy. 

I  repeat  these  remarks  because  they  illustrate  better 


CUBA  11 

than  anything  why  the  United  States  does  not  do  more 
business  in  Cuba.  The  truth  is  that  the  American 
people  do  not  know  Cuba.  The  American  business  man 
and  the  manufacturers  don't  know  Cuba.  Turn  to  the 
average  book  about  the  island,  and  you  will  find  little 
to  show  that  Cuba  is  a  quaint  old  land  with  queer,  set 
customs.  No,  our  manufacturers  and  business  men 
think  of  Cuba  as  a  "new  possession,"  a  new  island 
which  has  just  come  up  from  the  bottom  of  the  sea,  or 
as  a  territory  like  Oklahoma  which  has  recently  been 
opened  for  settlement.  When  we  learn  to  treat  the 
Spanish  business  men  of  Cuba  with  the  respect  and 
consideration  to  which  they  are  entitled  by  history 
and  position,  then  our  trade  relations  will  change  for 
the  better. 

And  the  trade  of  Cuba  is  worth  getting,  for  it  is  the 
most  important  country  of  Central  America  or  the 
West  Indies,  the  largest  inhabited  island  in  the  West- 
em  Hemisphere,  and  has  a  history  dating  back  to  the 
time  of  Columbus.  It  is  nearer  to  the  United  States 
than  any  southern  country  except  Mexico,  and  prob- 
ably has  a  more  stable  government.  The  average 
person  does  not  realize  that  the  island  is  over  seven  hun- 
dred and  fifty  miles  long,  %vith  a  population  of  fifty-four 
to  the  square  mile,  as  compared  with  five  to  the  square 
mile  in  the  average  South  American  country.  Cer- 
tainly most  business  men  do  not  realize  that  the  trade 
of  Cuba  per  capita  is  greater  than  that  of  any  other 
country  in  North  and  South  America  except  the  Argen- 
tine Repul)lic.  In  a  recent  year,  the  commerce  per 
inhabitant  for  Argentina  was  $108;  for  Cuba,  $100; 
Canada,  $97;  Chile,  $65;  United  States,  $33;  Brazil, 
$23;  and  Mexico,  $17. 


12     THE  FUTURE  OF  SOUTH  AMERICA 

Cuba  was  discovered  by  Columbus  in  1492,  and  its 
occupation  by  the  Spaniards  was  practically  continu- 
ous until  1898.  The  one  exception  was  in  1762,  when 
Havana  was  taken  by  the  English  and  held  for  a  few 
months.  It  cost  the  American  colonies  of  Great 
Britain  sixteen  million  dollars,  and  thirty  thousand 
lives,  to  acquire  Cuba  at  that  time,  but  in  the  next 
year  it  was  exchanged  for  Florida.  The  Spaniards 
found  an  Indian  population  of  about  a  million,  but 
the  natives  soon  perished,  and  negro  slaves  were  im- 
ported to  take  their  places  in  the  working  of  mines 
and  plantations. 

In  1848  President  Polk  authorized  the  American 
minister  to  Spain  to  offer  one  hundred  million  dollars 
for  the  island,  but  this  offer  was  refused.  The  revolu- 
tion of  1868  in  Spain  afforded  an  opportunity  for  an 
outbreak  in  Cuba,  and  a  civil  war  developed  which 
lasted  until  1878.  This  was  the  "Ten  Years'  War" 
which  ravaged  the  whole  island  and  was  terminated  by  a 
treaty  —  "The  Peace  of  Sanjon." 

Important  reforms  promised  by  Spain  were  never 
carried  out,  so  another  revolution  was  organized  in 
1895,  and  conditions  became  so  bad  that  the  United 
States  intervened.  The  campaign  which  ensued  was 
short;  the  Spaniards  were  vanquished,  and  the  island 
turned  over  to  the  Cubans  under  the  protection  of  the 
United  States  Government.  In  1902  the  new  Cuban 
Republic  was  placed  in  absolute  control,  and  since 
then,  with  the  exception  of  1907,  when  the  United 
States  felt  called  upon  to  intervene,  the  Cubans  have 
enjoyed  their  own  government. 

The  failure  of  our  business  men  to  grasp  the  geo- 
graphical and  historical  significance  of  Cuba  is  one 


CUBA  13 

reason  why  the  Cubans  do  not  trade  with  us,  but  there 
is  another:  the  tradesmen  of  Cuba  dislike  us.  One  of 
the  leading  merchants  of  Havana  told  me  frankly  that 
he  would  buy  from  English  and  German  manufacturers 
rather  than  from  those  in  the  United  States,  prices  be- 
ing equal. 

This  aroused  my  curiosity,  and  the  next  day  I  went 
back  to  see  him,  and  after  talking  of  general  matters 
(one  should  not  be  so  rude  with  a  Latin-American  as 
to  start  right  in  by  talkmg  business)  I  asked,  ''Why  is 
it  that  the  people  of  Cuba  do  not  love  us?" 

"That  question  is  asked  me  by  almost  every  man 
whom  I  meet  from  your  country,"  he  said.  "Because 
you  sent  a  few  soldiers  over  here  and  helped  us  whip 
the  Spaniards  when  we  already  had  them  about 
whipped,  is  not  all  of  the  story.  You  must  remember 
that  we  had  been  fighting  them  for  nearly  fifty  years, 
and  that  we  feel  that  it  was  rather  revenge  for  the  blow- 
ing up  of  the  Maine  that  brought  you  into  the  war 
than  any  love  for  us.  However,  we'll  be  generous  and 
give  you  the  benefit  of  the  doubt.  But  how  about 
your  tariff  legislation? 

"You  have  harmed  us  more  with  your  iniquitous 
tariff  legislation  than  you  helped  us  with  your  glorious 
Spanish  War.  For  two  centuries  the  people  of  this 
island  devoted  their  strength  and  capital  to  develop- 
ing the  sugar  industry.  The  nations  of  the  world  owe 
all  they  know  about  sugar  to  this  little  island.  The 
life  of  our  trade,  the  value  of  our  land,  the  employment 
of  our  people,  and  the  prosperity  of  all  of  us  were  founded 
upon  the  sugar  industry.  Moreover,  in  spite  of  all  our 
troubles  and  abuses  under  Spanish  rule,  we  had  built 
up  a  great  industry,  and  our  people  were  fairly  well  off 


14  THE  FUTURE  OF  SOUTH  AMERICA 

and  contented.  The  very  fact  that  we  were  able  to 
fight  the  Spanish  as  we  did  was  evidence  of  our 
prosperity. 

"Our  success  became  the  envy  of  some  people  in 
your  country.  Some  of  these  men  were  honest  planta- 
tion owners  in  Mississippi,  Louisiana,  and  other  south- 
ern States;  others  were  land  speculators  and  promoters 
in  Utah  and  your  western  States.  They  were  deter- 
mined to  control  the  sugar  industry. 

*'We  hold  nothing  against  your  people  for  such  am- 
bitions. You  had  every  right  to  develop  sugar  plan- 
tations and  compete  with  us  in  your  markets,  but  you 
should  not  have  used  an  unjust  tariff  to  accomplish 
such  a  result.  You  should  have  fought  a  fair  fight, 
relying  upon  your  brains,  capital,  soil,  and  industry  as 
your  weapons.  You  were  already  on  the  ground,  and 
this  gave  you  an  advantage  at  the  start.  Why  should 
not  your  people  have  been  satisfied  with  these  advan- 
tages without  attempting  to  resort  to  unjust  tariffs? 
But  no,  you  were  in  too  great  a  hurry.  You  were  not 
content  to  grow  slowly  and  fairly.  You  wished  to  be- 
come great  producers  of  sugar  at  once,  even  although 
it  ruined  us.    Do  you  call  that  brotherly  love? 

"And  ruin  us  you  did.  For  a  long  time  after  the 
enactment  of  this  law,  we  suffered  tremendously.  In 
fact,  we  have  never  recovered.  When  the  European 
War  broke  out  in  1914,  sugar  was  very  low,  and  the 
industry  greatly  depressed.  Great  plantations  which 
represent  years  of  labor  are  still  lying  idle  —  all  be- 
cause of  your  selfishness  and  hurry  in  endeavoring  to 
create  a  sugar  industry  too  quickly. 

"If  you  had  been  content  with  limiting  your  imports 
of  sugar  to  their  former  figures  and  had  even  created 


CUBA  15 

legislation  so  that  the  increased  consumption  would 
have  gone  to  j'our  o'uti  planters,  we  would  not  have 
complained.  But  you  not  only  demanded  the  benefit 
of  your  increased  growi:h,  but  also  stole  from  us  by 
imjust  means  the  industry  which  we  had  so  labori- 
ously developed." 

I  have  quoted  my  Cuban  friend  at  length  because 
his  remarks  bring  out  a  fundamental  fact  which  is  at 
the  bottom  of  all  our  foreign  trade  relations.  Before 
the  United  States  can  get  the  good  will  of  Cuba  and  the 
rest  of  the  islands  in  the  West  Indies,  we  must  revise, 
not  so  much  the  tariff,  as  our  tariff  principles.  We 
must  recognize  that  although  we  have  the  right  to 
encourage  home  industries,  we  have  no  right  to  ruin 
the  industries  of  other  nations.  I  am  not  pleading  for 
free  trade.  So  long  as  other  nations  erect  tariff  walls, 
perhaps  we  must  do  the  same.  But  should  we  erect 
tariffs  against  nations  which  have  not  tariffs  against 
us?  I  am  not  pleading  even  for  general  tariff  reduc- 
tions. Where  foreign  nations  have  built  up  industries 
with  our  present  tariffs  in  existence,  there  may  be  no 
reason  why  we  should  lower  them.  But  after  a  foreign 
nation  has  created  an  industry  with  the  understand- 
ing that  our  tariff  is  to  be  a  certain  amount,  should  we 
increase  it  without  the  consent  of  some  international 
representative  commission? 

It  was  with  the  same  thought  in  mind  that  a  member 
of  the  Cuban  Congress  once  said  to  me : 

"What  kind  of  hypocrites  have  you  in  the  United 
States  that  pray  on  Sunday  for  world  peace  and  then 
on  Monday  talk  about  capturing  the  trade  of  other 
nations  and  the  need  of  higher  tariffs?" 

But  to  return  to  the  geography  of  Cuba,  which  one 


16     THE  FUTURE  OF  SOUTH  AMERICA 

should  know  before  an  accurate  idea  of  the  trade  con- 
ditions can  be  gained.  Cuba  is  really  a  great  garden 
lying  ninety  miles  east  of  Key  West,  Florida.  The 
island  is  seven  hundred  and  eighty  miles  long  and 
varies  in  width  from  twenty  to  a  hundred  miles.  It 
has  two  thousand  miles  of  coast  line  and  a  total  area 
of  about  forty-five  thousand  square  miles.  With  the 
exception  of  the  northern  part  of  Maine,  which  to-day 
is  practically  uninhabited,  Cuba  is  as  large  as  the 
whole  of  New  England  put  together.  The  State  of 
Massachusetts  has  about  one  fifth  the  area  of  Cuba; 
Vermont  and  New  Hampshire  about  one  fourth,  while 
Rhode  Island  has  only  about  one  twentieth  of  Cuba's 
area.  Before  one  visits  Cuba,  he  has  little  impression 
of  the  size  of  the  island.  I  had  not  realized  that  it  takes 
twenty-four  hours  by  train  or  forty-eight  hours  by 
steamer  to  go  from  Havana  to  Santiago  on  the  other 
side  of  Cuba.  The  island  is  somewhat  mountainous, 
for  all  the  West  Indies  are  simply  the  tops  of  a  high 
range  of  subterranean  mountains  projecting  above  the 
surface  of  the  sea.  About  one  fifth  of  Cuba  is  moun- 
tainous and  some  of  the  ranges  are  much  higher  than 
one  would  expect,  for  in  the  Sierra  Maestra  range  there 
is  one  peak  eighty-three  hundred  feet  above  sea  level. 
Of  the  rest  of  the  country,  three  fifths  is  made  up  of 
fertile  plains,  with  scattering  hills  and  valleys,  and 
about  one  fifth  is  swampy. 

Cuba  is  sometimes  called  the  "Island  of  a  Hundred 
Harbors,"  and  certainly  she  is  greatly  blessed  with 
harbors,  which,  by  the  way,  are  very  scarce  on  the 
coast  of  South  America.  More  than  fifty  harbors  are 
ports  of  entry,  many  of  them  deep  and  pouch  shaped, 
with  narrow  entrances  completely  landlocked.     The 


CUBA  17 

entrance  to  the  harbor  of  Santiago  is  the  most  remark- 
able I  have  ever  seen.  The  city  is  absohitcly  invisible 
from  the  sea,  being  approached  only  through  a  long, 
tortuous  channel,  six  miles  in  length,  the  sea  opening 
being  only  six  hundred  feet  wide.  Certainly  the  chief 
cities  of  Cuba  have  been  determined  b}^  the  harbors,  of 
which  that  of  Havana  is  the  best.  The  entrance  is  only 
one  thousand  feet  wide.  Good  harbors  make  good 
cities,  hence  as  one  travels  along  the  coast  of  Cuba  and 
sees  a  fine  harbor,  he  may  be  sure  that  some  day  a 
large  city  A\'ill  develop  there,  even  though  only  a  few 
negro  huts  are  to  be  found  now. 

There  are  already  several  important  cities.  Havana, 
of  course,  is  the  best  kno^^'^l,  and  is  located  on  the  north- 
west coast;  Santiago  de  Cuba  is  located  at  the  south- 
east; Cienfuegos,  an  important  market  place,  is  on  the 
southern  coast,  and  Antilla,  a  new  made-to-order  town 
like  Gary,  Indiana,  is  on  the  northeastern  coast.  The 
chief  interior  cities  are  Camaguey,  Santa  Clara,  and 
Matanzas. 

Another  geographical  feature  of  Cuba  which  im- 
pressed me  is  the  large  number  of  rivers  and  streams. 
It  is  true  that  most  of  the  rivers  are  small,  but  they 
are,  nevertheless,  of  tremendous  value.  A  prominent 
banker  of  Havaiyi  assured  me  that  these  rivers  number 
two  hundred  and  fifty,  the  largest  ones  being  El  Canto 
and  the  Sagua  la  Grande.  Otherwise  water  is  scarce, 
for  although  the  total  rainfall  is  heavy,  yet  it  comes  all 
at  once,  and  thus  far  no  storage  facilities  exist. 

In  going  to  a  new  country,  particularly  in  the  tropics, 
the  climate  must  be  given  careful  consideration. 
Winter  in  Cuba  is  like  our  April  and  May;  and  summer 
like  our  July  and  August  —  only  hotter.     However, 


18  THE   FUTURE   OF  SOUTH  AMERICA 

it  is  always  possible  to  get  into  a  breeze.  The  heat  is 
greatly  tempered  by  the  wonderful  trade  winds  which 
blow  from  the  northeast  with  but  little  variation 
throughout  the  year.  The  nights,  during  both  winter 
and  summer,  are  cool.  Unfortunately,  however,  the 
sections  of  the  island  which  present  the  greatest  oppor- 
tunities for. making  money  are  also  the  most  unhealth- 
ful.  This  applies  especially  to  the  coast  line  during 
the  summer  season.  Yellow  fever  has  been  stamped 
out  to  a  great  extent,  but  malaria  still  rages.  There 
have  been  some  cases  of  plague  in  Havana,  but  a  sys- 
tematic campaign  has  been  carried  on  against  the 
rats  which  spread  the  infection,  and  the  city  is  destined 
in  time  to  be  very  healthful,  if  indeed  it  may  not  be 
called  so  already. 

Employees  of  Americans  whom  I  have  met  in  the 
tropics  tell  me  that  one  must  be  very  moderate  in  his 
diet  and  take  precautions  as  to  exposure  either  to  the 
dampness  of  night  or  the  heat  of  midday.  The  people 
do  not  go  out  in  the  sun  as  do  we  foolish  North  Ameri- 
cans, but  plan  their  work  and  play  to  take  best  advan- 
tage possible  of  l^oth  the  breeze  and  shade.  Of  course 
there  are  excessive  rains  at  certain  periods  of  the  year, 
and  this  is  especially  true  during  the  summer  months. 
This  rainfall  interferes  with  travel  on  the  country 
roads  and  is  also  conducive  to  malaria.  In  this  con- 
nection, the  following  remarks  of  one  Cuban  may  be  of 
interest : 

"Neglect  of  sanitary  measures  is  the  chief  cause  of 
local  diseases,  but  in  summertime  one  is  more  liable  to 
contract  them  than  in  the  winter.  A  cool  breeze  gen- 
erally plays  along  the  coast  and  frequent  'northers,' 
strong  and  cool,  produce  an  equivalent  of  seasonal 


CUBA  19 

changes.  Once  in  a  great  while  the  island  is  visited  by 
a  hurricane.  That  of  184G  dcstroj'cd  nearly  two  thou- 
sand houses  in  Havana  alone  antl  wrecked  three  hun- 
dred vessels,  while  the  growing  crops,  especially  in  the 
eastern  part,  have  often  been  leveled  to  the  ground. 
These  hurricanes  occur,  however,  in  the  summer 
months,  generally  in  August  and  September." 

In  spite  of  these  drawbacks  natural  to  a  tropical 
country,  Cuba  is  one  of  the  most  healthful  countries 
in  the  world.  The  mortality  among  the  two  million 
five  hundred  thousand  inhabitants  in  a  recent  year  was 
only  12.6  per  thousand,  which  was  lower  than  that  of 
any  other  country  for  that  year  except  Australia, 
where  the  death  rate  was  the  same. 

Havana,  the  capital  of  Cuba,  is  the  largest  and  most 
prosperous  city,  has  the  best  situation,  and  is,  I  be- 
heve,  destined  to  retain  its  leadership.  The  old  New 
England  sea  captains  used  to  say  that  they  could  always 
find  Havana  without  chart  or  compass.  The  harbor 
was  so  full  of  filth  and  debris  that  one  could  trust  his 
nose  as  a  sure  guide  to  that  port.  Those  were  the  days 
when  monarchy  held  sway  and  the  Cubans  were  ex- 
ploited by  a  few  for  a  few.  With  the  establishment  of 
democracy,  however,  conditions  changed,  and  Havana 
has  been  steadily  and  greatly  improved  during  recent 
years.  Its  streets,  although  still  narrow,  have  been 
paved  and  asphalted.  There  are  electric  lights,  sewers, 
municipal  water,  and  other  improvements.  Its  wide 
boulevard  —  the  Prado  —  which  stretches  along  the 
water  front,  is  unexcelled,  and  there  are  as  many 
automobiles  as  on  the  boulevards  of  an  American  city, 
while  the  stores  of  Obispo  Street  are  noted  among  con- 
noisseurs of  jewelry,  laces,  and  other  articles  of  adorn- 


20  THE  FUTURE  OF  SOUTH  AMERICA 

ment.  The  deposits  and  homes  of  the  leading  banks 
are  worthy  of  any  large  city,  as  are  the  libraries,  schools, 
churches,  theaters,  and  newspapers.  High  office  build- 
ings are  now  being  erected.  Even  baseball  is  played 
with  enthusiasm!  The  American  business  man  is 
lunched  at  as  beautiful  a  clubhouse  as  can  be  found  in 
any  American  city,  while  the  newsboys  are  as  active 
in  selling  the  daily  papers  as  on  election  night  on 
Broadway.  The  hotels  are  good,  and  of  course  cigar 
factories  are  found  everywhere.  Moreover,  Havana 
has  most  beautiful  and  interesting  suburbs  which  are 
reached  by  electric  lines,  as  are  the  suburbs  of  so  many 
of  the  larger  American  cities.  Although  formerly  sur- 
rounded by  a  high  wall,  Havana  has  recently  expanded 
greatly  in  size  and  now  contains  a  population  of  about 
five  hundred  and  fifty  thousand. 

From  a  sociological  point  of  view,  it  is  interesting  to 
note  that  certain  sections  of  Havana  are  more  densely 
packed  than  any  other  city  in  the  world,  with  the  ex- 
ception, perhaps,  of  certain  Chinese  cities.  What  ap- 
plies to  Havana  in  this  regard  also  applies  to  the  other 
large  cities  of  Cuba,  and  especially  to  Santiago,  Guan- 
tanamo,  and  Matanzas. 

But  Havana  on  the  whole  is  now  a  clean  and  progres- 
sive city,  a  worthy  capital  for  our  worthy  cousins.  I 
use  the  term  "cousins,"  because  Cuba  bears  a  different 
relation  to  us  from  that  of  any  other  nation.  Cuba  is 
an  independent  democracy  with  its  own  president, 
congress,  and  judiciary.  Its  people  are  free  citizens, 
with  a  patriotism  and  love  for  flag  and  country  as 
great  as  that  of  any  people  on  the  face  of  the  globe. 
On  the  other  hand,  there  exists  a  treaty  between  the 
United  States  and  Cuba  whereby  Cuba  agrees  not  to 


CUBA  21 

do  certain  things  without  the  consent  of  the  United 
States,  and  the  United  States  agrees  to  protect  Cuba 
from  outside  interference,  and  stand  ready,  when  re- 
quested, to  interfere  in  case  of  internal  revolutions. 

I  know  of  few  cities  where  I  would  rather  buy  real 
estate  to-day  than  in  Havana.  Of  course,  the  customs 
of  the  country  are  not  ours,  and  the  American  busi- 
ness man  should  learn  tliis  and  not  try  to  force  his 
ideas  on  the  merchants.  He  won't  succeed  in  the  first 
place,  and  he  can't  get  business  except  by  meeting  the 
conditions  of  trade  and  life. 

How  little  some  of  our  manufacturers  understand 
the  Cuban  trade  is  well  illustrated  by  the  statement  of 
one  of  my  Spanish-American  friends.    He  said: 

"Are  your  manufacturers  in  the  United  States  ab- 
solutely crazy?  Do  they  hope  to  have  a  salesman,  in 
one  week,  secure  trade  which  England  and  Germany 
have  been  forty  years  in  building  up?  And  yet  yes- 
terday I  asked  a  representative  of  a  large  Chicago  firm 
how  he  was  getting  on  and  he  replied:  'Punk!  I've 
been  here  now  nearly  a  week  and  have  secured  only 
two  orders.  There  is  nothing  here.  This  town  is  too 
slow  for  me.  I'm  going  to  beat  it  on  the  next  boat.' 
Now  let  me  ask  what  that  Chicago  firm  would  have 
thought  of  us  if  they  had  been  serving  us  for  forty 
years  and  we  had  suddenly  thrown  them  over  upon  the 
first  call  of  a  fresh,  strange  salesman  whose  principal 
ability  seemed  to  consist  in  drinking  highballs  and 
cracking  jokes  about  our  people?" 

The  Culmn  people,  and  this  is  true  of  most  Latin- 
Americans,  know  how  to  enjoy  life  and  do  business  at 
the  same  time.  I  remember  a  visit  I  paid  in  company 
with  a  North  American  manufacturer  to  one  of  the 


22  THE  FUTURE  OF  SOUTH  AMERICA 

largest  commission  houses  in  Havana.  We  went  in  one 
of  those  old-fashioned  carryalls  such  as  our  fathers 
used  to  drive,  over  cobble-stoned  streets  where  the 
paving  was  laid  under  Spanish  rule  many  years  ago. 
As  we  reached  my  Cuban  friend's  place,  my  companion 
said: 

"Why,  this  isn't  much  of  a  place,  or  at  least  they 
have  not  much  business;  it  is  too  quiet." 

Now  it  was  not  lack  of  business  which  set  my  friend 
adrift.  It  was  the  fact  that  these  Cuban  merchants 
and  their  employees  take  life  calmly  and  sensibly. 
Instead  of  working  in  the  hot  sun  as  New  York  clerks 
are  often  compelled  to  do  in  summertime,  people  are 
protected  by  great  awnings  and  curtains  hung  at  the 
outer  edges  of  the  sidewalk. 

"Why,"  he  continued,  "these  clerks  look  as  if  they 
were  on  a  vacation  —  see  their  light  shoes,  their  white 
clothes,  and  their  comfortable  collars !  It  looks  to  me 
as  if  business  was  pretty  dull." 

But  when  the  Cuban  merchant  arrived  and  stated 
his  monthly  output,  my  friend  was  convinced  that 
haste  does  not  always  signify  good  business. 

One  distinguishing  feature  of  Havana  is  the  market- 
basket  habit.  The  city  has  three  large  public  markets, 
and  every  other  Cuban  city  has  one  or  more  of  com- 
parative importance.  In  Havana,  Tacon  is  the  largest, 
Christina  is  the  oldest,  and  Colon  is  the  newest.  All  are 
worth  careful  study.  Here  we  find  on  sale  the  fruits, 
vegetables,  and  other  products  of  the  island.  But  you 
must  not  think  that  the  markets  of  these  cities  are 
limited  to  the  sale  of  garden  and  farm  produce.  Every 
city  in  Latin  America  has  some  peculiar  industry  of  its 
own;  one  city  makes  hats;  another  city  may  make 


CUBA  23 

beads,  and  another  baskets.  All  these  products,  as 
well  as  general  merchandise,  may  be  found  in  central 
markets.  ^len  who  cannot  get  space  at  the  public 
market  to  sell  their  goods,  go  about  the  street  with 
pushcarts  or  on  horseback.  Ever>^'here  in  the  morn- 
ing is  to  be  seen  the  milkman  sitting  on  his  horse  with 
a  big  can  of  milk  on  each  side.  Then  comes  the  baker, 
on  horseback  also,  with  great  baskets  of  bread.  Even 
butchers  travel  about  on  horseback.  I  once  saw  a 
man  riding  along  with  three  live  pigs  hanging  from 
one  side  of  the  saddle  and  a  string  of  live  chickens 
dangling  from  the  other  side.  Latin-American  children 
are  trained  to  reduce  the  cost  of  living  by  real  market- 
ing. Thus  we  can  learn  from  them  something  about 
the  art  of  buying  as  well  as  of  the  art  of  living. 

Mention  of  the  art  of  living  calls  to  mind  the  great 
central  park  in  Havana,  —  a  beautiful  spot  wdth  con- 
crete walks,  flower  beds,  laurel  trees  cut  in  formal 
shapes,  and  statuary.  From  four  o'clock  in  the  after- 
noon until  late  at  night  crowds  come  to  this  municipal 
playground.  Around  about  are  the  hotels,  restau- 
rants, theaters,  clubhouses,  and  public  buildings;  but 
the  park  itself  is  £.  garden  and  a  playground  for  all  the 
people.  Almost  every  evening  the  municipal  band 
plays  and  the  scene  is  always  gay,  but  lovely  and  peace- 
ful —  much  different  from  the  vulgar  and  flashy 
brightness  of  our  large  cities  or  from  the  deathly  and 
lonesome  darkness  of  the  typical  country  town.  I 
know  of  no  city  in  the  United  States  which  gives  such 
plea.sure  to  its  people,  and  yet  this  same  scene  is  being 
repeated  every  night  in  hundreds  of  Latin-American 
cities.  As  a  matter  of  fact,  I  do  not  believe  that  if  we 
had  similar  playgrounds  our  people  would  use  them. 


24     THE  FUTURE  OF  SOUTH  AMERICA 

We  are  too  busy;  too  nervous.  We  don't  know  how 
to  recreate.  It  is  this  temper  of  the  Latin-American 
which  leads  our  business  men  astray  in  their  judg- 
ments of  them. 

A  trip  I  always  make  when  I  am  in  Havana  is  to 
the  two  forts  which  guard  (?)  the  entrance  to  the  har- 
bor. On  the  left  as  you  enter  is  Morro  Castle,  a  six- 
teenth-century fortress  perched  on  a  headland  one 
hundred  feet  above  the  sea  and  separated  from  the 
mainland  by  a  moat  seventy  feet  wide.  Below  are  the 
dungeons  which  served  as  prisons  for  the  Cuban  pa- 
triots. At  one  end  can  be  seen  the  chute  down  which 
prisoners  are  said  to  have  been  thrown  into  the  "sharks' 
nest"  below.  Back  of  the  castle  are  seen  the  fortifica- 
tions known  as  Cabanas.  Here  massive  and  continu- 
ous walls  follow  the  harbor  line.  So  much  time  and 
money  were  consumed  in  the  building  of  these  walls, 
that  on  their  completion  in  1774,  Carlos  III,  then  king 
of  Spain,  exclaimed  when  told  of  the  cost:  "Let  me  go 
to  my  palace  and  look  for  them.  Surely  if  they  are  as 
great  as  you  represent,  they  can  be  seen  from  here." 

On  the  right  of  the  entrance  to  the  harbor  is  Punta 
Castle,  begun  about  two  hundred  and  sixty-five  years 
ago.  This  is  located  at  the  end  of  the  Prado  and,  like 
the  fortifications  opposite,  still  serves  as  barracks  for  the 
Cuban  soldiers.  When  I  last  visited  this  old  fort,  I  was 
much  impressed  by  the  remarks  of  the  Cuban  officer 
who  took  me  about.  Every  gun  we  passed  (except  a 
little  rapid-firing  "Colt"  down  by  the  entrance)  he 
would  point  to  and  say:  "No  good."  All  the  big  guns 
he  insisted  were  not  only  dangerous  to  load,  but  could 
not  be  moved  even  to  aim.  As  he  made  this  same  com- 
ment on  every  one  we  came  to,  I  finally  asked  him  how 


CUBA  25 

Havana  would  be  protected  in  case  of  trouble,  and  ho 
quickly  replied:  "By  the  United  States.  We  have  no 
fortifications  nor  guns.  We  are  depending  upon  you 
to  defend  us  in  case  of  trouble.  You  are  our  '  cousins/ 
don't  you  know?" 

So  far  as  I  can  learn,  the  only  modern  fortifications 
existing  on  the  island  are  at  Guantanarao,  the  United 
States  naval  base,  alx)ut  forty  miles  east  of  Santiago. 

The  opportunities  which  Cuba  presents  to  the 
people  of  the  United  States  may  be  roughly  divided 
into  two  classes:  first,  those  existing  for  manufac- 
turers who  wish  to  extend  their  foreign  trade,  and  to 
whom  Cuba  offers  an  excellent  market;  secondly,  those 
for  men  of  moderate  means  who  desire  to  take  up  the 
growing  of  staple  foodstuffs.  In  the  first  place  it  must 
be  remembered  that  the  United  States  already  con- 
trols half  of  Cuba's  imports  and  close  to  eighty-five 
per  cent,  of  her  exports.  This  means  that  many  keen 
United  States  business  men  have  already  availed  them- 
selves of  this  market.  In  other  words,  Cuban  imports 
from  the  United  States  already  amount  to  seventeen 
dollars  per  capita,  and  Cuban  exports  to  the  United 
States  already  amount  to  twenty  dollars  per  capita. 
The  chances  for  increased  trade,  however,  are  grow- 
ing steadily,  and  the  opening  of  the  ferry  service  be- 
tween Havana  and  Key  West  inaugurated  an  era  of 
greatly  increased  possibilities. 

Cuba  is  immensely  rich  in  its  natural  resources. 
The  annual  sugar  crop  is  worth  over  one  hundred  mil- 
lion dollars,  the  tobacco  crop  about  thirty-five  million 
dollars;  citrus  fruits  are  produced  to  the  value  of  ten 
million  dollars,  and  pineapple,  cacao,  honey,  asphalt, 
iron,  henequeu,  mahogany,  cedar,  and  the  like  yield 


26  THE  FUTURE  OF  SOUTH  AMERICA 

ten  million  dollars.  Iron  is  the  chief  product  in  the 
field  of  minerals,  and  here  were  found  the  great  cliffs 
of  iron  ore  which  were  afterward  purchased  by  one  of 
the  great  independent  steel  companies  of  our  own 
country.  In  addition  to  iron,  there  are  gold,  copper, 
and  manganese  in  the  mountains.  The  traveler  will 
find  that  his  train  runs  through  grand  forests  contain- 
ing such  precious  woods  as  mahogany,  cedar,  and  log- 
wood, with  great  tracts  of  banana,  orange,  and  mango 
trees.  The  government  still  owns  a  million  and  a 
quarter  acres  available  for  exploitation,  but  it  is  away 
from  the  railroads,  and  one  must  wait  patiently  for 
transportation.  Our  nearest  competitors  for  Cuban 
trade  are  Great  Britain,  Spain,  Germany,  and  France, 
in  the  order  named.  Cuba  produces  about  five  billion 
six  hundred  million  pounds  of  sugar  a  year.  This 
means  fifty-six  million  hundredweight.  A  cent  a 
pound  does  not  mean  much  to  any  one  who  consumes 
only  a  few  pounds  a  month;  but  to  Cuba  that  small 
increase  in  price  would  mean  an  additional  fifty-six 
million  dollars  coming  in!  Moreover,  if  there  is  one 
product  of  the  world  which  is  sure  to  increase  in  con- 
sumption per  capita,  it  is  sugar.  Although  our  people 
consume  about  eighty  pounds  a  year  each,  the  Eng- 
lish and  French  now  consume  only  about  half  this, 
the  Germans  only  about  a  third,  and  the  Italians  only 
about  one  quarter  of  this  amount.  My  guess  is  that 
the  world's  demand  for  sugar  is  sure  to  increase  and 
that  our  Cuban  cousins  will  some  day  greatly  profit 
thereby. 

In  connection  with  the  possibilities  for  our  citi- 
zens in  Cuba,  the  following  statement  by  the  secretary 
of  the  Cuban  Legation  at  Washington  is  suggestive: 


CUBA  27 

"The  Cubans  are  all  purchasers  of  the  necessities, 
comforts,  and  luxuries.  All  have  money;  the  working- 
men,  farm  hands,  and  laborers  get  good  wages,  and 
they  spend  their  money  for  things  they  want.  Cuba's 
commerce  with  the  United  States  —  exports  and  im- 
ports together  —  is  much  greater  than  the  combined 
commerce  of  China,  Russia,  and  Africa  with  the  United 
States.  A  little  more  than  half  the  imports  are  from 
this  country.  A  much  greater  percentage  could  be 
secured  if  merchants  and  manufacturers  would  make 
the  right  efforts  to  secure  it.  It  seems  strange  that 
proper  effort  is  not  made.  Information  has  been  given 
for  so  many  years  that  one  would  think  everybody  knew 
what  was  required  to  gain  and  hold  Latin-American 
trade,  Cuban  conditions  being  similar  in  the  main  to 
those  of  all  Central  and  South  American  countries. 
Credits,  styles  and  shapes  of  goods,  packing  —  these 
are  the  main  points  in  Cuba  and  elsewhere.  Merchants 
and  manufacturers  may  regard  the  Latin-American 
wishes  as  mere  whims.  Call  them  what  you  will,  they 
must  be  considered  and  complied  with,  if  that  trade  is 
to  be  captured.  There  is  a  much  better  understanding 
among  the  Pan-American  countries  now  than  ever  be- 
fore. We  all  come  nearer  being  one  people  than  hereto- 
fore, and  it  is  the  opportunity  of  the  United  States 
greatly  to  expand  her  trade  with  her  closer  neighbors. 
All  the  islands  and  the  countries  of  the  Gulf  of  Mexico 
are  likely  to  see  a  considerable  development  from  now 
on.  When  the  people  of  these  countries  are  consumers 
in  a  like  degree  as  the  Cubans  are  now,  the  United 
States,  if  it  gets  their  trade,  could  not  for  some  time 
make  enough  goods  and  articles  to  export  to  any  other 
countries. 


28  THE  FUTURE  OF  SOUTH  AMERICA 

"Our  people  will  continue  to  be  large  producers  of 
sugar.  They  know  the  sugar  business,  and  they  like  it. 
On  rich  soil  it  is  not  necessary  to  replant  oftener  than 
once  in  twenty  years  or  more,  and  even  on  old,  worn 
soils  replanting  is  not  required  oftener  than  every 
four  years." 

With  these  attractions,  it  would  seem  that  our  manu- 
facturers should  get  busy  and  place  even  more  of  our 
products  in  Cuba.  To  these  manufacturers  I  would, 
however,  speak  a  few  words  of  advice.  First  of  all  in 
seeking  to  increase  your  trade,  send  a  representative  to 
Cuba,  who  will  visit  Havana,  Matanzas,  Santiago,  Cien- 
fuegos,  and  all  the  other  important  cities.  Don't  let 
him  be  content  with  visiting  Havana.  He  should 
study  the  wants  and  customs  of  the  Cubans,  which  from 
climatic  and  other  reasons  are  necessarily  different 
from  ours.  He  will  have  to  learn  that  he  cannot  force 
any  kind  of  an  article  on  the  Cuban.  When  he  comes 
back  to  your  factory,  he  is  very  likely  to  impress  on  you 
that  you  cannot  acquire  and  hold  the  trade  of  a  foreign 
people  while  you  continue  to  send  out  fabrics  in  lengths 
and  widths  which  do  not  suit  these  strangers.  Certainly 
our  North  American  manufacturers  are  too  set,  as  a 
rule,  in  their  methods  of  foreign  trading.  They  want 
the  foreigners  to  accept  their  styles,  measurements, 
weights,  and  systems  of  credit.  This  is  all  wrong,  and 
it  is  precisely  for  this  reason  that  European  manufac- 
turers have  been  able  to  step  in  under  our  noses  and 
carry  off  a  valuable  percentage  of  the  trade. 

I  wish  again  to  impress  upon  manufacturers  the  ne- 
cessity of  sending  your  own  man  to  Cuba.  Bear  in 
mind  that  the  expense  of  a  trip  to  Cuba  is  not  nearly  as 
great  as  the  South  American  journey.    Not  only  are 


CUBA  29 

transportation  costs  much  less,  but  it  is  cheaper  to  Uve 
in  Cuba  than  in  South  America.  In  selecting  a  man  to 
represent  you  in  Cuba,  get  a  good  man  of  your  oa\ii  ac- 
quaintance, who  speaks  Spanish ;  pay  him  a  good  salary 
and  give  him  full  liberty  to  work  out  the  business  in  the 
country.    This  is  the  only  satisfactory  method. 

The  Cuban  Government  has  expended  a  considerable 
sum  to  encourage  immigration  of  the  man  of  moderate 
means  who  will  take  up  the  vocation  of  raising  truck 
and  garden  produce.  In  this  connection,  it  has  sent  out 
reliable  information,  particularly  as  to  agricultural  ad- 
vantages. This  work  has  been  greatly  needed,  as  for 
many  years  irresponsible  firms  have  been  sending  out 
everyA\'here  alluring  and  misleading  literature  con- 
cerning Latin-American  opportunities,  especially  in 
regard  to  citrus  fruit  growing.  The  secret  of  successful 
farming  in  Cuba  lies  in  the  growing  of  staple  foodstuffs 
and  truck,  and  not  in  fruit  growing.  The  man  who  will 
forget  citrus  growing  and  who  will  intelligently  buy  and 
cultivate  a  small  patch  of  land,  should  be  rewarded  by  a 
comfortable  subsistence  and  secure  an  income  here  more 
easily  than  in  almost  any  other  place.  The  only  draw- 
back seems  to  be  the  pests  which  have  a  special  fondness 
for  temperate  vegetables. 

Land,  such  as  is  generally  considered  very  satisfac- 
tory for  farming  in  our  agricultural  States,  and  which 
is  ^^^thin  possible  reach  of  a  port,  may  be  purchased  in 
Cuba  for  twenty-five  dollars  an  acre,  and  the  price  in 
many  cases  ranges  down  as  low  as  ten  dollars.  Such 
soil  is  not  adapted  to  the  cultivation  of  oranges  or 
tobacco,  and  therefore  it  has  escaped  the  fancy  prices 
demanded  by  the  o^\Tlers  of  citrus  land,  where  prices 
often  run  from  three  to  five  times  as  high.    Moreover, 


30  THE  FUTURE  OF  SOUTH  AMERICA 

by  growing  ordinary  garden  truck  the  farmer  is  avoid- 
ing the  high  cost  incident  to  estabhshing  and  main- 
taining a  citrus  grove;  he  is  meeting  with  very  httle 
competition,  and  he  is  assured  of  a  good  market  for  his 
produce,  not  only  in  Cuba,  but  in  the  eastern  markets 
of  the  United  States. 

The  soil  in  Cuba  is  fine,  but  a  farm  or  plantation  is  no 
place  in  which  to  raise  a  family.  Farming  at  best  means 
hard  work  even  under  good  conditions,  but  where  there 
is  little  enforcement  of  law,  as  in  the  interior  of  Cuba,  the 
chances  for  the  honest  North  American  farmer  are  slim. 
Moreover,  the  farmer  in  Cuba  is  absolutely  dependent 
for  his  profits  upon  the  railroads,  steamships,  and  mid- 
dlemen. Even  the  cattle  raisers  are  limited  to  a  local 
market.  The  United  States  will  not  allow  cattle  to  be 
imported  into  our  country  on  the  hoof,  and  no  cold- 
storage  plant  or  canning  factory  for  the  beef  exists. 

In  buying  land,  one  must  be  very  careful  about  land 
titles,  as  many  Americans  have  had  much  trouble. 
Water  is  a  serious  question.  Even  the  city  of  Santiago 
is  limited  to  a  few  hours  of  water  a  day,  and  during  a 
dry  spell  cattle  will  drop  in  price  from  five  cents  to 
three  cents  a  pound  on  the  hoof. 

Living  conditions  in  the  country  districts  of  Cuba  are 
very  unsatisfactory.  Of  course,  there  are  fine  American 
colonies  in  the  suburbs  of  Havana,  yet  the  real  oppor- 
tunities are  not  in  the  cities,  but  in  the  country  dis- 
tricts. I  believe  that  there  are  much  better  chances  for 
a  young  man  in  a  growing  city  of  the  Canadian  North- 
west than  in  the  cities  of  Cuba.  To  get  agricultural 
opportunities  in  Cuba  one  must  go  out  into  the  coun- 
try, and  in  the  tropics  this  is  a  very  difficult  thing  to  do. 
There  are  few  means  of  communication;    almost  no 


CUBA  31 

schools  exist,  and  one  must  go  through  considerable 
hardship  to  be  a  pioneer  in  any  country.  The  land 
near  the  coast  is  usually  low  and  unhealthy,  while  in- 
land the  soil  is  apt  to  be  dry  and  barren.  In  other 
words,  in  the  fertile  sections  it  is  unliealthy  to  live,  and 
in  the  healthful  sections  there  are  few  agricultural  op- 
portunities. A  single  man  with  good  physique  and 
plenty  of  courage  could,  without  a  doubt,  make  con- 
siderable money  by  going  to  the  tropics  and  develop- 
ing a  farm,  a  cocoanut  plantation,  a  cattle  ranch,  or 
something  else  in  the  valleys  or  along  the  coast. 

If  you  will  visit  Cuba  and  talk  with  the  leaders  in 
political  and  commercial  affairs,  you  will  be  glad  to  call 
Cubans  your  cousins.  Whatever  the  officials  may  have 
been  in  the  past,  they  are,  at  present,  a  high-grade,  in- 
telligent body  of  men.  All  the  government  officials 
with  whom  I  have  come  in  contact,  from  the  door- 
keepers to  the  President  himself,  have  been  able  and 
serious  men  of  whom  the  people  of  Cuba  may  well  be 
proud. 

The  heartiest  reception  I  received  in  Cuba  was  at  the 
presidential  palace.  A  more  homelike,  hospitable  place 
it  is  hard  to  imagine.  Although  located  in  the  city,  it  is 
built  like  all  fine  southern  homes,  in  the  form  of  a  square 
with  a  garden  in  the  center.  Such  architecture  pro- 
vides both  shade  and  air  in  the  hottest  days.  In  addi- 
tion, each  room  opens  by  long  French  windows  upon  a 
balcony.  Against  the  windows  are  both  shades  and 
shutters.  The  palace  has  a  great  covered  sidewalk  in 
front  where  the  people  may  congregate,  and  opposite 
is  an  open  place  suitable  for  a  large  gathering.  From 
the  outside  it  looks  like  a  city  block. 

The  President  of  the  Repu})lic  of  Cuba  at  that  time 


32     THE  FUTURE  OP  SOUTH  AMERICA 

was  General  Mario  G.  Menocal,  a  fine-looking  man  of 
about  forty-five  years  of  age,  with  a  black,  bushy  beard, 
his  military  bearing  telling  the  story  of  his  service  in 
the  Revolutionist  Army.     Said  I: 

"Mr.  President,  I  have  stopped  off  at  Havana  on 
my  way  to  South  America  to  ascertain  just  what  oppor- 
tunities there  are  to-day  in  Cuba  for  people  from  the 
United  States." 

Thereupon  the  President  turned  in  his  chair  and  re- 
plied : 

"  I  am  very  glad  that  you  ask  me  about  business  mat- 
ters instead  of  political  affairs,  because,  as  you  know, 
I  am  a  plain  business  man  in  the  sugar  industry,  I  am 
not  an  expert  on  political  questions.  You  ask  about 
opportunities  for  Americans  in  Cuba.  Let  me  tell  you 
that  they  are  unlimited.  We  possess  the  most  fertile 
land  of  the  semi-temperate  zone.  You  good  people  of 
the  United  States  do  not  realize  the  extent  of  Cuba. 
We  have  a  great  stretch  of  garden  land  seven  hundred 
and  eighty  miles  long.  This  is  nearly  the  distance  be- 
tween Chicago  and  your  Atlantic  seaboard.  Here  al- 
most anything  can  be  raised.  We  have  iron,  copper, 
and  other  minerals.  Our  rich  valleys  are  adapted  to 
the  cultivation  of  the  finest  tobacco  in  the  world;  and 
on  our  fine  pasture  lands  cattle  may  graze  throughout 
the  entire  year.  Less  than  twenty  per  cent,  of  Cuba  is 
under  cultivation.  The  island  is  now  the  center  of  the 
sugar  industry,  which,  when  fully  developed,  can  easily 
supply  the  entire  world  with  sugar.  Whenever  you 
find  a  man  who  wishes  to  invest  money  in  the  finest 
kind  of  agricultural  lands,  and  really  to  work  them, 
send  him  to  Cuba." 

I  then  asked:    "Mr.  President,  do  you  think  there 


CUBA  33 

are  opportunities  in  the  island  for  mercantile  and  man- 
ufacturing industries?  As  I  study  the  imports,  I  am 
surprised  to  see  how  many  things  the  Cuban  people 
import  which  could  be  as  well  manufactured  in  your 
island." 

To  this  he  rephed:  "  I  rather  question  whether  many 
opportunities  exist  in  Cuba  for  Americans  to  engage  in 
mercantile  ventures.  Our  merchandizing  is  very  well 
handled  by  the  Spanish  element  in  the  community. 
These  people  are  thrifty  and  economical.  I  know  of  no 
merchants  in  the  world  who  surpass  the  Spanish  mer- 
chants whom  you  see  here  in  Havana.  Therefore  I 
would  not  advise  Americans  to  come  here  with  the  idea 
of  opening  stores. 

*'  When  it  comes  to  manufacturing  —  that  is  another 
matter.  Lying  as  we  do  so  near  your  coast,  with  the 
center  of  your  manufacturing  so  constantly  moving 
southward,  Cuba  should  some  day  be  a  hive  of  indus- 
trJ^  I  go  further,  and  say  that  it  should  become  a  great 
industrial  center  of  the  Western  Hemisphere.  Some 
daj^  the  island  will  hum  with  cotton  machinery.  There 
will  some  day  be  shoe  factories,  paper  mills,  steel  plants, 
and  canning  houses  in  Cuba,  such  as  no  man  to-day 
dreams  of.  Moreover,  the  first  to  come  will  make  the 
greatest  success. 

"I  am  especially  convinced  that  Cuba  is  a  very  safe 
place  in  which  to  invest  one's  money.  I  think  that  our 
country  has  been  greatly  injured  in  the  eyes  of  invest- 
ors by  certain  land  promoters  from  the  United  States 
who  have  lx)ught  cheap  land  here  and  have  gone  back 
and  sold  it  to  your  people  in  small  parcels  at  fabulous 
prices.  Tell  your  people  that  before  buying  property 
in  Cuba  they  should  come  down  and  see  the  land.    Tell 


34      THE  FUTURE  OF  SOUTH  AMERICA 

them  to  come  and  consult  our  government  bureau  which 
handles  such  matters.  We  will  gladly  give  advice  as  to 
where  good  land  can  best  be  purchased,  where  good  in- 
vestments can  be  made,  and  what  should  be  avoided. 
We  are  all  very  sorry  when  any  one  loses  money  in 
Cuba,  and  we  want  to  do  everjd^hing  possible  to  pre- 
vent such  losses.  To  be  successful  in  this,  however, 
persons  must  come  to  us  for  advice  before  making  an 
investment  or  buying  any  land,  and  not  wait  till 
afterward." 

Most  of  my  friends  in  Cuba  always  advise  strongly 
against  any  one  going  there  from  the  United  States 
unless  he  has  capital  and  is  in  a  proper  physical  condi- 
tion to  stand  Cuban  climate.  Personally  I  heartily 
commend  this  advice,  beheving  that  the  United  States 
is  the  best  country  in  the  world  for  the  man  without 
capital,  and  that  any  such  make  a  great  mistake  in 
leaving  our  shores  even  for  an  attractive  spot  like  Cuba. 
President  Menocal,  however,  said  to  me : 

"I  don't  believe  it  is  necessary  for  a  man  to  have 
capital  to  make  a  success  in  Cuba.  Even  to-day,  dur- 
ing these  hard  times,  labor  is  in  good  demand  in  the 
sugar  industry.  The  cheapest  wage  is  a  dollar  a  day, 
and  there  are  big  opportunities  for  men  with  character, 
brains,  and  muscle.  It  is  with  genuine  pleasure  that  I 
view  the  widespread  and  deeply-felt  interest  of  the 
American  people  in  their  Latin-American  brethren. 
This  feeling  of  interest,  manifested  by  the  desire  to 
bring  about  closer  commercial,  political,  and  economic 
relations  between  the  United  States  and  the  Spanish- 
American  republics,  though  natural  and  logical,  has 
long  lain  dormant,  and  would,  perhaps,  have  been  long 
in  finding  forceful  expression  had  not  the  unfortunate 


CUBA  35 

conflict  in  Europe  brought  home  to  all  of  us  the  neces- 
sity of  drawing  still  closer  together  the  already  friendly 
ties  binding  our  several  countries.  This  is  especially 
true  of  Cuba,  between  which  and  the  United  States, 
even  aside  from  our  debt  of  gratitude,  there  have  always 
existed  the  most  cordial  relations." 

The  future  of  Cuba,  however,  will  be  determined  by 
something  more  substantial  than  cordial  relations;  we 
must  give  her  a  square  deal.  Our  future  trade  with 
Cuba  is  dependent  upon  hard  work  and  careful  efforts 
on  the  part  of  our  manufacturers  and  merchants. 


CHAPTER  III 
Porto  Rico 

We  can  never  understand  the  people  of  Latin 
America  until  we  know  more  of  their  history.  We  think 
of  Plymouth  Rock  and  other  historic  spots  as  the  first 
settlements  of  the  Western  Hemisphere,  but  there  were 
well-established  towns  in  the  West  Indies  before  Ply- 
mouth was  ever  heard  of.  The  following  table  gives 
concisely  some  of  the  facts  which  must  be  understood 
in  order  to  estimate  the  commercial  possibilities  of 
these  islands. 

In  October,  1492,  Columbus  first  landed  on  an  island 
now  grouped  with  the  Bahamas.  In  the  same  year  he 
visited  the  north  coast  of  Cuba,  while  his  first  real 
settlement  was  on  the  island  of  Hayti.  In  Santo  Do- 
mingo City,  Hayti,  we  find  the  oldest  settlement  in  the 
Western  Hemisphere,  which  has  been  in  continuous 
existence  since  its  foundation  in  1496.  Here  Columbus 
was  imprisoned,  and  from  this  place  he  was  carried  in 
chains  to  Spain. 

Jamaica  was  famous  as  the  headquarters  of  pirates. 
Port  Royal,  just  outside  of  Kingston,  was  known  as  the 
''wickedest  city  in  the  world,"  until  its  destruction  by 
earthquake  in  1692.  Jamaica  became  an  English  island 
through  Admiral  Penn,  the  father  of  William  Penn. 
All  these  West  Indian  islands  were  at  one  time  the  prop- 


PORTO  RICO 


37 


erty  of  Spain,  but  were  lost  to  the  British,  French,  and 
Dutch  in  the  seventeenth  and  eighteenth  centuries. 

Personally,  I  believe  that  as  long  as  we  live  there  will 
be  no  need  for  us  or  our  children  to  leave  the  temperate 


Country 

Area  in 
square 
rniles 

Population 

Discov- 
ered 

Chief  ports 

Cuba    .... 

Hayti  and  Santo 

Domingo   .    . 

Bahamas     .    . 

Jamaica  .    .    . 

Porto  Rico  .    . 

Trinidad      .    . 

Martinique  and 
the  French  Is- 
lands .... 

Leeward  Islands 

Windward  Is- 
lands .... 

Dutch   Islands 

Barbados     .    . 

Danish  Islands 

Tobogo    .    .    . 

\'irgin  Islands 

Bermudas    .    . 

44,164 

28,249 

4,404 
4,200 
3,606 
1,754 

1,073 
715 

516 
403 
166 
138 
114 
58 
20 

2,469,125 

2,629,700 

57,241 

831,383 

1,118,012 

333,552 

406,430 
127,193 

157,264 
55,183 

171,982 

27,086 

21,406 

4,908 

19,935 

1492 

1492 

1492 
1494 
1493 
1498 

1493 
1500 

1500 
1493 
1536 
1493 
1498 
1493 
1515 

Havana. 

Port-au-Prince      and 
Santo  Domingo  City. 

Kingston. 
San  Juan. 
Port  of  Spain. 

Fort-de-France. 
St.  John. 

St.  George's,  Grenada. 

Willemstad,  Curasao. 

Bridgetown. 

Charlotte  Amalic. 

Scarborough. 

Tortola. 

Hamilton. 

89,580 

8,430,400 

zone  in  order  to  prosper.  Any  reader  of  this  book  who 
lias  energy  and  ability  enough  to  make  a  success  in  the 
West  Indies  can,  with  the  same  ability,  make  a  greater 
success  by  remaining  in  the  United  States.  If  you 
have  any  doubt  on  this  score,  write  to  a  few  of  our 
consuls.     But  these  islands  do  offer  great  opportunities 


38     THE  FUTURE  OF  SOUTH  AMERICA 

to  our  manufacturers  who  go  after  the  business  with 
intelligence. 

One  reason  why  I  turn  first  to  the  discussion  of  Cuba 
and  Porto  Rico  is  because  they  are  under  the  influence 
of  the  United  States.  In  these  islands  the  settler  will 
have  difhculties  enough,  but  here  he  will  get  real 
protection. 

Porto  Rico  has  a  great  future  as  a  health  and  pleasure 
resort  in  winter,  and  also  offers  some  opportunities  for 
trade,  but  it  does  not  seem  to  me  a  land  for  money  mak- 
ing except  in  a  speculative  way.  It  is  a  lovely  spot, 
inhabited  by  delightful  people,  and  it  offers  the  addi- 
tional attraction  of  being  a  colony  of  the  United  States. 
The  chief  port  and  capital  of  the  island  is  San  Juan, 
with  its  truly  romantic  and  picturesque  harbor.  There 
are  many  San  Juans  in  the  southern  seas,  but  this  is 
San  Juan  Bautista,  founded  and  named  in  1509  by 
Ponce  de  Leon,  who  was  governor  of  Porto  Rico  at  that 
time.  The  harbor  was  the  scene  of  one  of  the  most 
pathetic  sea  stories  of  England,  the  story  of  the  last 
voyage  of  Admiral  Hawkins  and  Francis  Drake.  These 
great  Elizabethan  sailors  got  together  a  fleet  and  sailed 
from  Plymouth,  England,  in  1595.  The  voyage  was 
disastrous  from  beginning  to  end.  After  suffering  re- 
verses at  the  Canaries  and  Marie  Galante,  the  fleet  ar- 
rived off  San  Juan.  The  aged  admiral  died  when  land 
was  sighted,  and  Drake  then  took  command  of  the 
ships.  On  a  Wednesday,  at  break  of  day,  the  English 
fleet  appeared  off  the  forts.  After  several  attacks,  in 
which  the  heretofore  invincible  Drake  was  repulsed, 
the  English  fleet  bore  away,  beaten. 

Porto  Rico  has  scenery,  schools,  good  government, 
attractive  climate,  and  everything  except  opportunity 


PORTO  RICO  39 

for  growth.  Our  young  people  going  to  Porto  Rico  with- 
out money  should  do  one  of  two  things:  either  hold  a 
government  job  or  else  work  for  some  North  American 
concern.  Native  labor  is  paid  about  sixty-two  cents  a 
day,  and  there  have  been  serious  labor  troubles. 

The  principal  cities  of  the  island  are  San  Juan,  Ponce, 
and  Mayaguez.  The  following  description  of  San  Juan 
may  be  of  interest :  "It  is  the  only  fortified  city  of  Porto 
Rico,  situated  on  a  small  island  at  the  end  of  the  har- 
bor. The  island  is  two  miles  in  length  and  half  a  mile 
in  breadth,  connected  with  the  mainland  by  two 
bridges.  On  the  northwest  end  of  this  small  island  is  the 
famous  Morro,  the  initial  fortification  which  was  begun 
soon  after  San  Juan  was  founded,  but  was  not  finished 
until  1584.  Here  was  the  citadel,  a  small  military  town 
in  itself,  with  chapel,  bakehouse,  great  water  tanks, 
warehouses,  officers'  headquarters,  barracks,  bomb- 
proofs,  and  dungeons  near  and  under  the  sea.  This  old 
citadel  is  but  the  beginning  of  the  wall  which  completely 
inclosed  the  city  within  a  line  of  connected  bastions, 
deep  moats,  guarded  gates,  crenelated  battlements  with 
projecting  sentry  boxes  —  in  fact,  all  the  defenses  of 
medieval  times." 

In  addition  to  the  great  stone  walls,  some  of  which 
are  nearly  a  hundred  feet  high,  there  are  the  outlying 
forts  of  San  Antonio  and  San  Geronimo,  which  guard 
the  inland  Ijridgcs;  and  on  an  islet  in  the  harbor  is  the 
small  but  strong  fort  of  Canuelo,  between  which  and 
the  Morro,  less  than  a  thousand  yards  distant,  all  large 
ships  have  to  pass  to  make  this  port. 

San  Juan  is  the  oldest  and  quaintest  possession  of  the 
United  States  in  the  New  World,  antedating  Havana 
by  six  or  seven  years  and  St.  Augustine,  in  Florida,  by 


40     THE  FUTURE  OF  SOUTH  AMERICA 

more  than  fifty  years.  Entering  the  gateway  in  the 
walls,  the  traveler  finds  the  city  regularly  laid  out,  with 
six  streets  running  east  and  west  and  seven  others 
crossing  them  at  right  angles.  There  are  two  large 
plazas  and  several  smaller  squares,  called  plazuelas, 
which  are  favorite  places  for  promenades  and  recre- 
ation. 

The  houses  are  mainly  of  massive  construction,  Ori- 
ental-Spanish in  appearance,  with  flat  roofs  and  jutting 
balconies,  grilled  windows  without  glass,  open  patios  in 
the  center,  and,  until  1898,  with  few  sanitary  conven- 
iences. There  was  a  howl  of  protest  when  the  conquer- 
ors compelled  the  house  owners  to  install  sanitary 
arrangements  where  none  had  ever  been  before,  and  to 
connect  them  with  the  sewers,  which  were  constructed 
in  streets  that  had  previously  served  as  open  drains. 
But  the  work  has  been  done,  and  San  Juan,  formerly  a 
plague  center  for  disease,  is  now  one  of  the  most  cleanly 
of  cities. 

Of  the  thousand  and  more  houses  within  the  walls, 
not  more  than  half  are  two  stories  in  height,  but  few 
are  three,  and  all,  of  course,  are  chimneyless.  The 
streets  are  paved,  and  until  recently  were  filthy,  for 
water  was  scarce;  but  now  there  is  a  water  supply 
piped  into  the  city  from  the  Rio  Piedras,  where  the 
reservoirs  and  pumping  engines  are  located.  The  former 
palace  of  the  Captain-general,  now  the  executive  man- 
sion and  governmental  headquarters,  is  an  imposing 
edifice,  taken  together  with  the  battlemented  platform 
on  which  it  stands.  Near  it  is  the  Casa  Blanca,  or 
White  House,  the  ancient  castle  of  Ponce  de  Leon,  the 
oldest  and  most  attractive  structure  there,  with  its 
walled  garden  and  surrounding  palms.    There  are  many 


PORTO  RICO  41 

other  fine  buildings,  some  twenty  churches,  chibs,  both 
native  and  foreign,  a  casino,  a  hbrary,  and  a  well-estab- 
lished Young  Men's  Christian  Association.  The  city  is 
well  provided  with  schools  and  hospitals.  The  stores 
are  numerous  and  well  stocked,  formerly  entirely  with 
European  goods,  but  lately  with  more  of  our  own 
products. 

There  are  a  nimiber  of  small  tOAvms  on  the  island  rang- 
ing in  population  from  a  couple  of  hundred  to  a  couple 
of  thousand.  These  towns  are  like  small  New  Eng- 
land villages,  with  two  or  three  stores,  a  post  office  and 
a  church,  although  in  Porto  Rico  the  church  is  a  Roman 
Catholic  edifice  of  stone  of  the  Spanish  type  rather  than 
the  tjTDical  New  England  church  with  its  white  paint, 
green  blinds,  and  a  high  steeple. 

I  have  been  greatly  surprised  to  find  Porto  Rico  so 
thickly  populated.  The  United  States  has  a  population 
of  about  twenty  to  the  square  mile,  while  the  popula- 
tion of  this  island  is  nearly  three  hundred  to  the  square 
mile!  These  people  are  a  mixture  of  Spanish,  negroes, 
and  Indian,  a  race  much  like  the  Cubans,  but  more 
peaceful,  as  they  were  not  abused  so  much  by  Spain. 
Out  of  a  population  of  a  million,  about  six  hundred 
thousand  are  of  Spanish  extraction;  about  sixty  thou- 
sand are  negroes,  and  the  remainder  mixed.  These 
people  have  a  contented,  indifferent  air,  and  their 
chief  occupations  are  said  to  be  "  eating  and  resting 
and  waiting  for  the  sun  to  set."  The  feeling  toward  us 
is  not  much  more  friendly  than  in  Cuba.  All  these  coun- 
tries look  upon  North  Americans  as  intruders.  Even 
the  Spanish,  who  treated  them  so  cruelly,  are  held  in 
higher  esteem  than  we  are.  Yet  we  have  done  no  differ- 
ently in  dictating  to  these  people  than  England  has 


42  THE   FUTURE   OF   SOUTH  AMERICA 

done  in  Jamaica  and  Trinidad.  The  fact,  however, 
that  we  pretend  to  stand  for  democracy  probably  makes 
us  appear  as  hypocrites  in  their  eyes.  Instead  of  look- 
ing at  us  as  liberators,  they  feel  that  we  have  stolen  their 
island.  As  a  result  of  the  Spanish  War,  Porto  Rico  was 
ceded  to  the  United  States,  but  we  have  not  yet  given 
citizenship  to  the  Porto  Ricans,  although  if  we  do  not 
soon  grant  it  there  is  sure  to  be  trouble. 

Porto  Rico  originally  had  as  many  natural  advantages 
as  any  of  the  West  Indies.  It  is  fairly  high,  gradually 
rising  toward  the  center,  which  consists  of  a  moun- 
tain some  four  thousand  feet  in  altitude.  The  hills  are 
partly  wooded,  and  there  are  many  fertile  valleys.  The 
island  is  also  blessed  with  many  rivers  and  streams, 
although  these  are  not  navigable.  This  high  land  has 
made  this  island  much  more  healthful  than  some  of  the 
others,  as  there  are  few  swampy  sections. 

Although  the  temperature  is  tropical,  yet  it  is  fairly 
even,  the  average  being  about  eighty.  The  thermom- 
eter will  run  up  to  a  hundred  during  the  heat  of  the  day 
and  fall  considerably  at  night.  The  variations  of  ele- 
vation make  it  possible  to  enjoy  almost  any  tempera- 
ture one  desires,  as  it  is  hot  in  the  low  lands  and  cool 
on  the  mountains.  The  customary  trade  winds  make 
the  nights  pleasant  and  also  add  to  comfort  in  the 
shade,  even  during  the  hottest  days.  On  the  other  hand, 
these  trade  winds  sometimes  develop  into  terrific  hurri- 
canes during  certain  seasons  of  the  year,  especially  in 
summer,  and  they  have  caused  great  disasters. 

The  fact  that  things  which  come  easy  are  of  little 
value,  while  those  which  are  difficult  possess  great 
possibilities,  cannot  be  better  illustrated  than  by  the 
comparison  of  opportunities  in  Porto  Rico  and  in  the 


PORTO  RICO  43 

island  of  Hayti.  The  climate  in  Porto  Rico,  as  has 
been  said,  is  attractive,  the  laws  are  just,  the  island  is 
fully  policed;  good  postal  service,  schools,  and  trans- 
portation exist,  but  the  cream  has  been  skimmed! 
The  very  fact  that  these  good  conditions  prevail  has 
caused  most  of  the  opportunities  for  making  money  to 
be  seized.  It  is  true  that  a  man  is  safer  in  Porto  Rico 
than  in  New  York  City,  but  it  is  likewise  true  that  in 
the  latter  place  he  has  a  greater  opportunity  to  make 
money.  Things  come  easy  in  Porto  Rico;  things  are 
hard  in  Hayti,  but  there  the  soldier  of  fortune  has 
unlunited  opportunities. 

Of  course  Porto  Rico  has  certain  attractions,  es- 
pecially to  the  traveler  who  for  the  first  time  gazes 
upon  its  palm-bordered  shores;  but  for  the  young 
American  with  a  little  capital,  who  desires  to  strike 
out  and  make  a  dent  in  the  world,  there  are  better 
opportunities  elsewhere.  I  admit  that  the  soil  is 
fertile;  in  fact,  all  the  tropical  fruits,  flowers,  and 
trees  grow  spontaneously.  The  soil  is  even  remarkably 
rich,  having  been  cultivated  for  centuries  in  coffee, 
bananas,  and  sugar-cane.  The  island  is  really  the 
home  of  the  coffee  and  tobacco  industry,  and  some  of 
the  valleys  to-day  produce  the  best  coffee  berries  in 
existence.  Owing  to  the  aid  given  by  wealthy  American 
interests,  sugar-cane  is  now  the  leading  crop,  coffee 
and  tobacco  following  after,  with  an  increasing  tend- 
ency to  grow  citrus  fruits. 

The  land,  however,  is  practically  all  taken  up;  the 
forests  sell  as  high  as  does  land  in  northern  Maine. 
There  is  little  mineral  wealth  in  the  island,  and  the 
chief  resource  is  agriculture.  Now  agricultural  land 
is  all  right  if  it  can  be  obtained  at  a  small  price,  but  the 


44  THE  FUTURE  OF  SOUTH  AMERICA 

profit  in  agriculture  comes  not  from  raising  crops,  but 
from  the  increase  in  the  price  of  land  which  comes 
through  proper  development.  Hence,  if  one  must  pay- 
much  money  for  land  and  depend  upon  the  crops  for 
profit,  there  is  no  remarkable  opportunity. 

Porto  Rico  has  less  than  one  hundred  thousand  acres 
of  public  land  left,  and  if  an  investor  goes  to  Porto  Rico 
to  operate  a  large  farm  to-day,  he  must  pay  a  good 
price  for  it.  Plantations  easily  accessible  are  selling 
for  one  hundred  and  fifty  dollars  an  acre,  while  others, 
away  from  the  coast,  are  quoted  at  about  one  hundred 
dollars  an  acre.  To  a  young  man  with  little  capital 
these  prices  are  not  attractive. 

After  the  delightful  way  in  which  I  have  been  enter- 
tained on  the  island,  these  statements  doubtless  seem 
ungrateful.  Many  bright  young  people  have  gone  there 
from  the  "States"  and  are  leading  happy  lives  on  the 
plantations  outside  of  San  Juan.  It  is  a  delightful  life, 
and  I  envy  them  all !  However,  I  can  but  feel  that  this 
is  a  life  rather  for  those  who  already  have  money  than 
for  those  who  are  trying  to  make  their  fortune. 

The  future  of  Porto  Rico  is  as  a  great  winter  resort. 
Its  healthful  climate,  beautiful  roads,  and  other  at- 
tractions will  make  it  a  great  rival  of  Florida.  In  view 
of  this,  I  advise  the  purchase  of  high  lands  rather  than 
the  low  lands,  with  simply  fruit  raising  in  mind.  The 
greatest  profits  are  coming  to  the  owners  of  cheap  lands 
which  will  some  day  be  sought  by  winter  residents 
rather  than  to  the  owners  of  very  expensive  lands  suit- 
able only  for  fruit  culture. 

Porto  Rico  has  not  yet  been  brought  to  the  attention 
of  our  exporters  and  manufacturers  to  any  great  extent, 
yet  the  island  offers  some  market  for  manufacturers. 


PORTO  RICO  45 

In  the  textile  line,  practically  everything  must  be 
brought  to  the  island,  because  no  textiles  to  speak  of 
are  manufactured  there,  and  supplies  come  principally 
from  the  United  States.  Small  quantities  of  goods  still 
come  from  Spain,  but  in  such  insignificant  amounts  that 
they  are  not  worth  considering.  The  market  for  the 
higher  classes  of  goods  has  not  developed,  and  the  manu- 
facturer of  such  goods  will  have  difficulty  in  getting  a 
satisfactory  trade. 

Porto  Rican  merchants  to-day  want  only  cheap 
goods.  The  value  and  style  are  not  generally  given 
much  consideration,  as  long  as  the  merchandise  is  low 
in  price.  This  also  applies  to  most  West  Indian  and 
Central  American  merchants.  Many  of  them  have 
formed  the  habit  of  asking  for  "lottes"  (job  lots),  and 
judging  from  the  appearance  of  their  stocks,  they  have 
been  supplied  with  this  class  of  merchandise  in  big 
quantities.  Stores  in  interior  to^vns  have  their  shelves 
filled  with  shoes  and  hosiery  that  have  been  out  of  date 
in  the  United  States  for  years,  all  going  to  show  that  no 
matter  how  much  out  of  style  an  article  is,  it  may  have 
a  ready  sale  in  these  islands  at  a  low  price. 

Therefore  the  house  that  handles  the  higher  grades  of 
merchandise  finds  itself  at  an  immediate  disadvantage, 
and  can  hope  to  make  a  large  outlet  for  its  goods  only 
through  educating  the  masses  to  better  stuff.  You 
must  show  the  distributing  agents  that  it  is  more  satis- 
factory to  themselves,  to  the  retailer,  and  to  the  con- 
sumer to  use  good  merchandise,  and  you  must  bring  it 
al)out  that  the  children  of  the  schools  go  shod  instead 
of  barefoot  as  now.  This  docs  not  mean  that  trading 
in  job  lots  is  not  a  perfectly  legitimate  proposition,  so 
long  as  the  goods  are  not  represented  as  "firsts"  when 


46  THE  FUTURE  OF  SOUTH  AMERICA 

they  are  really  "seconds,"  or  when  an  out-of-date  style 
is  not  claimed  as  the  latest  one. 

In  conclusion,  let  me  mention  how  rapidly  the  Ameri- 
can idea  of  dress  is  being  adopted  in  the  tropics,  which, 
of  course,  is  going  to  be  a  great  factor  in  developing  the 
demands  of  the  Porto  Ricans.  Enterprising  bankers 
are  seeing  the  advantage  of  making  strong  connections 
with  the  mercantile  interests  of  the  island.  A  market 
for  money  at  ten  or  twelve  per  cent,  is  had  readily,  and 
many  of  the  prominent  Canadian  bankers  have  well- 
established  branches  in  the  principal  cities.  They  have 
been  more  alert  in  this  matter  than  have  the  bankers 
of  the  United  States.  Perhaps  our  bankers  can  find  here 
an  outlet  for  surplus  funds  in  a  country  under  the  protec- 
tion of  the  United  States.  Certainly  the  money  situa- 
tion should  not  continue  to  be  controlled  by  foreign 
bankers,  as  at  present.  These  same  comments  might  be 
made  concerning  any  of  the  Latin-American  countries 
within  our  sphere  of  influence.  The  truth  is  that  in 
developing  our  own  country  we  are  active  and  indus- 
trious, but  in  going  to  other  lands  we  are  lazy  and  indif- 
ferent. Whether  we  are  justified  in  being  lazy  may  be 
debatable,  but  we  certainly  are  not  justified  in  being 
indifferent.  Surely,  if  Porto  Rico  is  to  have  a  bright 
future,  we  must  concern  ourselves  with  its  develop- 
ment. In  taking  over  the  island,  we  assumed  a  respon- 
sibility, and  Porto  Rico's  future  depends  upon  our 
recognizing  the  responsibility  and  dealing  with  her 
justly. 


CHAPTER  IV 
Santo  Domingo  and  Hayti 

Santo  Domingo  and  Hayti  are  lands  of  golden  op- 
portunities for  young  men  who  are  willing  to  take  a 
chance  and  suffer  hardship.  This  island  of  Haji;i,  situ- 
ated a  few  miles  from  Porto  Rico,  offers  a  better  out- 
look than  ever  existed  in  our  great  West.  Financial 
history  teaches  that  money  is  made  most  rapidly  by 
doing  what  the  average  person  does  not  want  to  do, 
that  is,  by  not  following  the  crowd.  The  most  success- 
ful investor  is  he  who  buys  securities  during  times  of 
panic  when  every  one  else  wishes  to  sell,  and  who  sells 
when  every  one  else  is  buying.  Having  seen  so  many 
illustrations  of  success  coming  to  men  who  do  the  unu- 
sual or  unpopular  thing,  I  naturally  have  been  impressed 
with  the  island  containing  those  two  so-called  republics 
—  Santo  Domingo  and  Hayti.  Here  the  most  wonder- 
ful virgin  opportunities  lie  untouched.  Whether  one 
considers  gold  or  silver,  iron  or  copper,  primeval  for- 
ests or  fertile  valleys,  they  can  all  be  obtained  in  this 
island  for  the  asking. 

I  know  of  no  better  place  to  which  a  man  can  go  with 
the  combined  possii)ility  of  obtaining  wealth  and  ren- 
dering service  than  to  Santo  Domingo.  Not  only  are 
the  natural  resources  great,  but  there  is  no  one  who 
wants  them.  The  people  are  uneducated;  the  cities 
are  dirty;    communication  is  practically  nil,  and  the 


48  THE  FUTURE  OF  SOUTH  AMERICA 

entire  island  looks  like  a  deserted,  but  once  beautiful, 
garden.  Of  course  the  government  is  wretched;  there 
are  no  conveniences  or  modern  improvements,  and  it 
is  the  last  place  where  one  would  want  to  bring  up  a 
family.  On  the  other  hand,  merchandise  does  not  look 
attractive  to  the  merchant  during  a  business  depres- 
sion, nor  do  stocks  look  attractive  to  the  average  in- 
vestor during  a  panic.  Santo  Domingo  and  Hayti  are 
to-day  physically  and  politically  in  a  state  of  depres- 
sion and  panic,  and  the  island  has  been  in  such  a  con- 
dition for  so  long  a  time  that  it  looks  as  if  the  corner 
had  been  turned. 

Paradoxical  as  it  may  seem,  the  capital  of  Santo 
Domingo,  or  Santo  Domingo  City,  is  both  the  oldest 
and  the  most  backward  city  of  the  Western  Hemi- 
sphere, with  the  possible  exception  of  Port-au-Prince, 
the  capital  of  Hayti.  Columbus  went  to  Santo  Domingo 
and  made  a  real  settlement  in  1496,  after  his  brother 
had  chosen  the  site  for  a  city.  Columbus  once  owned  a 
house  there,  together  with  a  tower  which  he  built  to 
command  the  city.  The  chapel  which  he  used  to  attend 
still  stands  on  the  left  bank  of  the  Ozama  River,  oppo- 
site the  city.  It  is  interesting  to  realize  that  the  first 
land  discovered  in  this  hemisphere  will  probably  be  the 
last  to  be  developed.  At  any  rate,  it  is  to-day  the  most 
backward  place  in  this  section  of  the  world. 

The  island  is  divided  into  two  parts.  Santo  Domingo 
occupies  the  eastern  portion  and  contains  about  eight- 
een thousand  square  miles  of  the  total  area  of  the 
island.  The  remainder,  or  about  ten  thousand  square 
miles,  is  occupied  by  Hayti.  The  island  is  the  most 
mountainous  of  the  West  Indies  and  contains  the  high- 
est peaks,  one  of  which  is  eleven  thousand  feet  in  alti- 


SANTO  DOMINGO  AND  HAYTI  49 

tude.  Like  Cuba,  it  has  many  wonderful  harbors,  a 
number  of  which  are  not  yet  developed.  As  some  of 
these  harbors  are  at  the  mouth  of  rivers  rumiing 
through  most  fertile  and  beautiful  valleys,  it  seems  as 
if  there  were  many  opportunities  for  founding  cities 
which  will  some  day  be  of  great  importance.  In  fact, 
as  the  steamer  goes  along  the  coast,  one  notices  beauti- 
ful landlocked  harbors  without  a  human  being  in  sight. 

The  population  of  the  entire  island  is  probably  about 
two  millions,  of  which  one  quarter  lives  in  Santo  Do- 
mingo and  alx)ut  three  quarters  in  Hayii.  As  Santo 
Domingo  with  the  smaller  population  has  double  the 
area,  it  is  natural  to  suppose  that  its  population  is 
superior  to  the  Ha>i:ian  population.  In  fact,  there  is 
almost  no  comparison  between  the  two,  for  the  Santo 
Dominicans  have  a  good  amount  of  Spanish  blood  in 
their  veins;  while  the  towns  of  Mocha  and  Caballeros 
are  noted  for  their  fair  and  attractive  women. 

The  island  apparently  was  most  prosperous  several 
centuries  ago,  and  the  people  say  that  it  was  really 
better  when  it  was  being  exploited  by  the  Spanish, 
Dutch,  and  French  than  at  the  present  time.  But  the 
representatives  of  these  ''civilized"  nations  so  wickedly 
oppressed  the  natives  and  abused  the  slaves  they  had 
imported  from  Africa  that  the  negroes  arose  in  a  mass 
and  almost  aimihilated  all  the  white  people.  It  is  true 
that  the  island  is  noted  for  its  revolutions,  but  the  habit 
of  revolting  was  forced  upon  these  people. 

If  I  were  going  to  this  island  to  take  a  chance,  I 
naturally  would  go  first  to  Santo  Domingo.  This 
would  be  strange  and  raw  enough  for  a  starter,  and  it 
certainly  has  better  ripe  opportunities  than  any  other 
spot  in  the  West  Indies.    Santo  Domingo  is  more  hos- 


50      THE  FUTURE  OF  SOUTH  AMERICA 

pitable  to  strangers  than  is  Hayti,  sanitary  conditions 
are  much  better,  and  there  are  various  other  reasons 
why  I  would  land  and  probably  settle  first  in  Santo 
Domingo. 

On  the  other  hand,  the  greatest  opportunity  for  serv- 
ice and  profit  may  be  in  Hayti,  and  after  becoming 
acclimated  and  acquainted  with  the  language,  I  would 
examine  thoroughly  conditions  in  the  western  part  of 
the  island.  At  present  foreigners  cannot  own  land  in 
Hayti,  for  this  is  the  only  way  the  poor  Haytians  can 
keep  from  being  drawn  into  slavery.  The  new  genera- 
tion, however,  is  of  a  different  character  from  that  of  its 
fathers,  and  conditions  may  soon  be  changed  so  that 
Americans  will  be  permitted  to  own  land  and  will  be 
invited  to  develop  the  country.  When  that  time  comes, 
the  men  who  are  first  on  the  ground  will  get  the  most 
valuable  prizes,  whether  they  consist  of  virgin  forests 
or  undiscovered  gold  mines. 

The  first  gold  sent  from  America  to  Spain  came  from 
this  island.    One  writer  says  on  this  point: 

"Gold  was  first  seen  by  Columbus  on  the  north  coast 
of  Hayti,  but  not  until  he  had  reached  and  entered  the 
mouth  of  the  Yaqui  River  did  he  discover  the  precious 
metal  in  any  quantity.  There  his  men,  when  filling 
their  water  casks,  saw  clinging  to  the  hoops  of  the  casks 
glittering  particles,  which  proved  to  be  gold.  Flakes 
and  nuggets  had  been  given  to  the  Spaniards  by  the 
Indians  of  Hayti,  but  when  questioned  as  to  the  aurif- 
erous region,  they  always  pointed  to  the  mountains  of 
Santo  Domingo.  In  these  mountains  at  or  near  the 
headwaters  of  the  Yaqui,  in  a  region  then  and  now 
known  as  the  Cibao,  the  Spaniards  found  an  immense 
amount  of  gold  in  dust  and  nuggets." 


SANTO  DOMINGO  AND  HAYTI  51 

It  is  a  common  saying  in  the  islands  that  the  district 
where  gold  is  not  found  is  the  exception  rather  than  the 
rule,  leaving  out  of  the  reckoning,  of  course,  the  recent 
coralline  formations.  The  central  cordillera  is  threaded 
with  veins  of  gold-bearing  quartz,  but  the  richest  de- 
posits are  found  in  the  placers  in  various  parts  of  the 
territory.  Numerous  mines  have  been  started  in  sec- 
tions of  the  Cordilleras,  but  no  deposits  have  been  found 
to  equal  those  exploited  by  the  Spaniards. 

Some  silver  has  been  found,  but  a  much  greater 
quantity  of  copper  ore.  Iron  also  is  abundant,  but  it  is 
not  mined  to  any  extent,  and  the  same  may  be  said 
about  coal,  which,  however,  is  not  of  the  best  quality. 
Petroleum  has  been  discovered  in  great  volume  on  the 
southern  coast,  where  the  first  well  opened  gushed  to 
the  height  of  seventy  feet.  It  is  believed  to  be  in  a  zone 
or  belt  connecting,  perhaps,  with  an  extended  area 
which  embraces  the  oil-producing  regions  of  North  and 
South  America. 

Among  other  resources,  the  island  is  said  to  possess  a 
mountain  of  pure  crystal  salt,  and  some  precious  stones 
have  been  found.  But  tropical  fruits,  vegetables,  and 
forest  products  are  of  greater  value  than  all  the  mineral 
resources  combined,  for  the  varying  altitude  beneath 
the  hot  sun  bestows  upon  the  island  every  variety  of 
tree  and  shrub  and  plant.  All  the  tropical  fruits  may 
be  grown  along  the  coast  and  far  up  into  the  mountains, 
where  their  places  are  taken  by  semi-temperate  and 
temperate  fruits.  These  fruits  range  from  bananas  to 
strawberries,  the  vegetables  from  yams  to  cabbages 
and  potatoes,  a  different  fruit  or  vegetable  being  pos- 
sible for  every  degree  of  temperature  as  measured  by 
altitude. 


52  THE  FUTURE  OF  SOUTH  AMERICA 

Sugar-cane,  cacao,  cocoanuts,  coffee,  vanilla,  tobacco, 
and  the  like  grow  along  the  coast  luxuriantly,  and  in 
the  forests  may  be  found  dyewoods  and  rare  cabinet 
woods  such  as  mahogany  and  cedar. 

There  are  almost  no  manufactures  in  the  island. 
Taxes  are  low,  and  the  revenue  is  derived  from  imports 
and  exports,  which  amount  approximately  to  five  mil- 
lions and  seven  millions  per  annum.  Since  1905,  the 
customs  have  been  collected  by  ofiicials  under  the 
United  States  Government,  fifty-five  per  cent,  being 
banked  in  New  York  for  the  benefit  of  foreign  creditors. 
This  arrangement  was  sanctioned  by  the  treaty  of 
1907,  but  it  is  much  more  to  the  satisfaction  of  the  for- 
eign creditor  than  to  the  natives,  who  bitterly  resent 
this  intrusion,  as  they  call  it,  though  not  to  the  extent 
of  combating  it  by  force  of  arms. 

Possessing  a  fine  climate,  ''which  varies  but  little  from 
seventy  to  eighty  degrees  the  year  through,"  and  to  a 
great  extent  exempt  from  cyclones  and  earthquakes, 
this  island  should  be  occupied  by  a  more  numerous  pop- 
ulation than  it  is  to-day.  Although  the  Haytians  are 
still  fearful  of  foreigners,  yet  the  Dominicans  welcome 
foreign  capital  and  immigration.  They  are  not  averse 
to  modern  improvements,  moral  or  material,  and  one 
reason  they  have  not  made  greater  progress  is  their  iso- 
lation, another  being  the  disturbed  state  of  their  coun- 
try for  many  years  past. 

Before  visiting  the  island,!  did  not  realize  that  a  place 
could  exist  so  near  New  York  with  such  wretched  means 
of  communication  as  has  Santo  Domingo.  Highways 
suitable  for  carriages  and  wagons  are  practically  un- 
known, all  travel  being  either  on  horse,  donkey-back, 
or  on  foot.    In  the  rainy  season,  that  is,  during  the  sum- 


SANTO  DOMINGO  AND  HAYTI  63 

mer  and  early  autumn,  even  such  travel  is  almost  im- 
possible, for  these  paths  contain  pits  sometimes  two 
or  three  feet  in  depth,  worn  by  the  hoofs  of  countless 
animals. 

At  the  present  time  there  are  only  four  worth-while 
railroads  in  the  island,  and  these  are  mere  toys  com- 
pared with  the  possibilities.  Two  of  these  roads  are  in 
the  Santo  Domingo  end,  both  leading  inland  from 
harbors;  one  from  the  port  of  Sanshaz,  about  one  hun- 
dred miles  in  length,  and  the  other  connecting  Puerto 
Plata  with  Santiago  de  los  Caballeros.  Another  road  is 
being  built,  and  several  concessions  have  been  granted 
providing  for  other  lines. 

Much  to  my  surprise,  the  island  has  a  good  telephone 
and  telegraph  system,  connecting  all  of  the  principal 
cities.  A  good  postal  system  has  been  established,  and 
Santo  Domingo  belongs  to  the  Postal  Union. 

Puerto  Plata  has  an  intelligent  population,  and  this 
is  the  place  where  the  young  American  should  go  first 
to  get  the  lay  of  the  land.  Many  foreigners  are  al- 
ready located  in  this  city,  and  since  the  opening  of  the 
new  railroad  referred  to  above,  Puerto  Plata  has  be- 
come quite  a  lively  to^m.  Certainly  it  is  beautifully 
situated  on  a  picturesque  peninsula  at  the  foot  of  a  high 
mountain.  It  is  well  drained  and  probably  healthful ; 
in  fact,  it  compares  very  favorably  with  many  unde- 
veloped cities  of  other  nations.  Whether  the  railroad 
has  made  Puerto  Plata  or  whether  Puerto  Plata  has 
made  the  railroad,  I  do  not  know.  When,  however,  it 
is  considered  that  this  road  has  only  a  thirty-inch 
gauge,  is  only  forty-two  miles  long,  and  has  taken  three 
nationalities — Belgians,  Germans,  and  Americans  —  to 
build,  it  certainly  deserves  more  than  passing  notice. 


54  THE  FUTURE  OF  SOUTH  AMERICA 

I  tried  to  get  figures  showing  the  earnings  of  this  road, 
but  failed.  I  am  satisfied,  however,  that  despite  all  the 
revolutions  and  ignorance  on  this  island,  I  might  be 
tempted  to  invest  money  in  the  bonds  of  some  new 
Santo  Domingo  railroads  rather  than  in  the  common 
stock  of  some  old  lines  in  the  United  States. 

It  seems  like  a  romance,  but  I  really  beheve  that  a 
young  man  with  one  hundred  thousand  dollars  could 
go  to  this  island,  select  a  harbor  equal  to  that  of  Boston, 
build  a  railroad  and  own  a  city,  if  he  simply  had  courage 
and  tact.  There  is  no  opportunity  for  long  lines,  but 
there  are  numerous  opportunities  for  short  roads  oper- 
ating from  ten  to  fifty  miles,  all  of  which  some  day  are 
sure  to  be  combined  into  one  big  system.  Moreover, 
the  men  who  build  these  railroads  will  have  first  claim 
on  the  virgin  country  through  which  they  pass,  with 
the  products  of  timber,  gold,  and  tropical  fruits. 

I  have  visited  many  countries  in  my  travels.  Some 
have  wonderful  physical  opportunities,  but  have  no 
population;  others  have  a  horde  of  people,  but  have 
no  natural  resources.  Here  is  an  island  abounding  with 
people  and  crammed  full  of  natural  resources,  but 
without  stable  government  or  means  of  communica- 
tion. The  first,  namely,  the  stable  government,  is 
sure  to  come,  and  the  men  who  develop  the  railroads  in 
conjunction  with  the  improvement  of  the  government 
are  sure  to  reap  a  harvest  and  also  to  perform  a  great 
service  to  the  people.  At  present  the  cities  can  be 
reached  only  by  slow  vessels  which  ply  irregularly  from 
port  to  port,  or  by  almost  impossible  trips  across  the 
island  by  mule. 

Many  feel  that  before  this  island  can  enjoy  a  stable 
government,  additional  means  of  communication,  or 


SANTO  DOMINGO  AND  HAYTI  55 

almost  any  advantage,  it  must  have  the  advantages  of 
religion  and  education,  if  these  two  can  be  readily- 
separated.  I  cannot  speak  with  authority  about  the 
religion  of  the  "Black  Republic."  Certainly  I  have 
been  told  some  strange  stories;  these  arc  stories  which 
have  principally  accounted  for  the  backward  state  of 
affairs. 

Just  what  work  Christian  missionaries  are  doing 
among  these  people  I  do  not  know;  but  certainly  there 
must  be  a  great  opportunity.  At  any  rate,  the  great 
needs  of  the  hour  are  education  and  religion.  I  care 
not  which  comes  first,  the  other  is  bound  to  follow. 
Moreover,  until  both  come,  this  will  continue  to  be  the 
most  backward  portion  of  the  Western  Hemisphere. 

I  therefore  say  that  a  great  opportunity  exists  to-day 
for  that  soldier  of  fortune  who,  with  a  proper  amount  of 
religion,  education,  and  capital,  will  go  to  this  island 
and  develop  it  as  he  would  a  great  industry,  keeping  in 
mind  continually  that  success  can  come  only  by  perform- 
ing service.  On  the  other  hand,  readers  must  not  forget 
that  such  a  man  will  be  blocked,  discouraged,  and  per- 
haps subjected  to  great  hardships.  The  very  reason 
that  great  opportunities  exist  is  because  conditions  at 
present  are  wTetched,  the  place  is  deserted  by  foreign- 
ers, and  because  no  one  knows  much  about  what  there 
really  is  in  the  center  of  the  island. 

Alx)ve  I  have  referred  to  the  two  principal  cities  of 
Santo  Domingo,  its  capital,  Santo  Domingo  City,  and 
Puerto  Plata,  one  of  the  most  thriving  seaports.  As 
an  illustration  of  the  relative  development  of  Hayti 
compared  with  Santo  Domingo,  the  following  descrip- 
tion of  Port-au-Prince,  Hayti's  principal  city,  is  of 
interest: 


56      THE  FUTURE  OF  SOUTH  AMERICA 

"The  capital  and  largest  city  of  Hayti,  Port-au- 
Prince,  sometimes  called  Port  Republican,  lies  at  the 
head  of  a  deep  gulf  on  a  slope  facing  west  and  con- 
tains between  sixty  and  seventy  thousand  inhabitants. 
Owing  to  the  contiguity  to  a  vast  and  fertile  region 
that  needs  only  intelligent  cultivation  to  become  a 
treasure  house  of  great  wealth,  its  natural  advantages 
are  great,  but  in  the  matter  of  ministering  to  the  needs 
or  demands  of  travelers  it  is  lamentably  lacking." 

It  has  been  said,  and  with  feeling,  by  some  who  have 
been  compelled  to  remain  in  the  city  any  length  of  time, 
that  no  one  would  go  there  who  was  not  compelled  to. 
Said  an  officer  of  the  French  navy  who  was  there  at 
intervals  during  forty  years:  "In  my  acquaintance, 
the  city  has  not  changed  in  all  that  time  except  to  be- 
come more  wretched  and  dirty." 

It  may  still  be  said,  as  was  remarked  by  a  traveler 
many  years  ago:  "The  gutters  are  open  pools  of 
stagnant  and  fetid  water,  obstruct  the  streets  every- 
where, and  constantly  receive  accessions  from  the  in- 
habitants' use  of  them  as  cesspools  and  sewers.  There 
are  few  good  buildings  in  the  town,  and  none  in  the 
country,  the  torch  of  the  incendiary  having  been  ap- 
phed  at  short  intervals,  and  no  encouragement  is  offered 
to  rebuild,  either  through  protection  of  the  government 
or  local  enterprise.  It  is  also  as  true  of  Port-au-Prince  as 
Cape  Haitien,  that  buildings  destroyed  by  earthquake 
or  fire  are  rarely  replaced,  and  the  nearest  approach  to 
rebuilding  is  seen  in  a  slab  shanty  leaning  against  the 
ruins  of  a  larger  structure." 

These  same  conditions  I  find  exist  to-day.  Port-au- 
Prince  is  now  a  half-ruined  city,  with  a  few  buildings 
which  once  were  fine,  as  the  government  palace  on  the 


SANTO  DOMINGO  AND  HAYTI  57 

Champs  de  Mars  and  the  barnhke  cathedral,  where, 
in  order  to  gratify  the  sentiment  of  the  people,  saints 
and  virgins  are  painted  black  or  bro^^^l,  the  prevailing 
hue  of  the  population.    An  authority  on  the  city  says: 

"The  finest  building  in  the  city  was  formerly  the 
national  palace,  a  rambling,  one-story  structure  of  brick 
and  wood.  It  is  the  official  residence  of  the  president 
of  the  republic,  who  'receives'  on  certain  daj's,  when 
visitors  are  allowed  to  approach  his  'Excellency,'  who 
is  guarded  by  soldiers  and  sometimes  surrounded  by 
members  of  his  staff.  This  palace  occupies  the  seaward 
front  of  a  neglected  field  ambitiously  called  the  Champs 
de  Mars,  upon  which  are  occasionally  displayed  the 
ragged  remnants  of  the  Haytian  time. 

"The  city  is  generally  in  a  state  of  siege,  or  under 
martial  law,  and  barefooted  soldiers,  ragged  and  dirty, 
may  Ix^  seen  standing  guard  on  every  corner,  while 
Catling  guns  adorn  the  squares  and  even  the  corridors 
of  the  palace.  It  is  very  likely  that  the  visitor  will  have 
his  attention  drawm  to  these  men  of  Mars,  for  as  their 
pay  is  scanty  and  rarely  forthcoming  at  that,  they  are 
forced  to  appeal  to  charity  when  ofi  duty  and  make 
their  rounds  of  the  city  hat  in  hand  for  chance  con- 
tributions. 

"The  market  places  are  large  enough  and  were  origi- 
nally well  situated,  but  like  all  other  municipal  con- 
structions, they  are  allowed  to  become  deposits  of  filth 
until  the  rains  of  the  wet  season  wash  them  clean. 
They  are  worth  visiting,  even  if  for  no  other  purpose 
than  to  study  the  Haji:ianized  Africans  from  the  coun- 
try, who  come  in  with  fruits  and  vegetables,  sometimes 
with  meats.  The  meats  are  poor;  the  fruits  delicious. 
There  is  rarely  any  beef  to  be  had  in  Hayti  of  a  quality 


58     THE  FUTURE  OF  SOUTH  AMERICA 

good  enough  for  consumption  by  the  visitor,  and  the 
so-called  mutton  is  usually  derived  from  goats. 

"The  hotels  of  Port-au-Prince  partake  of  that  inter- 
mittent character  begotten  by  frequent  revolutions  and 
change  of  government  and,  in  fact,  there  is  but  one  good 
hotel  in  the  city.  ...  It  is  old  and  ramshackle,  but  its 
meals  are,  or  were,  excellent  and  well  served.  Still 
the  visitor  is  advised  not  to  linger  in  this  city  unless 
he  meets  some  of  the  few  white  people  here  who  might 
invite  him  to  their  country  seats  at  La  Coupe,  about 
five  miles  in  the  hills. 

"La  Coupe  is  the  summer  or  warm-weather  residence 
of  the  wealthier  class  of  Port-au-Prince  and  presents 
somewhat  the  appearance  of  a  well-to-do  suburb  of  an 
island  better  favored  in  its  inhabitants  than  Ha3rti. 
It  lies  at  an  altitude  of  twelve  hundred  feet  above  the 
sea  and  the  views  over  the  great  bay,  especially  at 
sunset  and  by  moonlight,  are  superb.  The  temperature 
here  is  several  degrees  below  that  of  the  city,  which 
hangs  around  the  nineties,  for  a  cool  breeze  is  playing 
all  the  time." 

As  stated,  I  strongly  advise  an  American  going  to 
this  island  to  take  a  steamer  to  Puerto  Plata,  on  the 
north  coast,  and  not  to  bother  with  the  city  of  Port-au- 
Prince  or  the  city  of  Santo  Domingo.  Puerto  Plata  is 
an  enterprising  place,  and  the  center  of  a  very  rich  and 
fertile  country,  where  land  can  be  purchased  at  from 
ten  to  forty  dollars  a  carreau,  which  is  three  and 
one  third  acres.  In  other  words,  better  land  can  be 
obtained  in  this  island  at  from  three  to  twelve  dollars 
an  acre  than  can  be  bought  in  Cuba  for  triple  that 
sum.  In  fact,  the  rainfall  and  wonderful  soil  will  some 
day  make  this  island  far  richer  than  Cuba,  and  the 


SANTO  DOMINGO  AND  HAYTI  59 

inconveniences  are  not  enough  greater  to  offset  the 
difference  in  the  price  of  the  land. 

Before  attempting  to  do  business  in  this  island,  one 
should  study  French  for,  as  in  Martinique,  it  is  both 
the  native  and  business  tongue.  Moreover,  as  also  in 
Martinique,  the  franc  is  the  standard  coin;  although, 
as  in  all  these  islands,  our  United  States  dollar  bill  is 
exceedingly  acceptable.  But  outside  of  the  language 
and  currency,  there  is  httle  to  remind  one  of  France 
in  this  island,  especially  in  the  western  end,  with  its 
black  Republic. 

The  future  of  Santo  Domingo  and  Hayti  will  be 
bright  as  soon  as  they  have  a  sufficient  number  of 
industrious  and  conscientious  immigrants.  Under  the 
new  United  States  influence,  such  a  time  should  soon 
be  here. 


CHAPTER  V 

Other  Islands  of  the  Caribbean 

Jamaica 

Jamaica  is  the  third  in  size  of  the  West  Indies,  ex- 
ceeded only  by  Cuba  and  Hayti.  It  has  an  area  of  over 
four  thousand  square  miles,  being  about  one  hundred 
and  fifty  miles  long  and  fifty  miles  wide  at  its  extreme 
measurement.  It  has  been  under  English  control  for 
a  long  time,  and  for  this  reason  is  pretty  well  devel- 
oped. Order  reigns  throughout  the  island,  and  it  is 
probably  the  safest  place  in  the  West  Indies  in  which 
to  live,  with  the  exception  of  Porto  Rico.  The  island 
has  a  certain  government  of  its  own,  it  operates  its  own 
railroad  system,  and  has  many  departments  for  the 
encouragement  of  agriculture  and  industry.  The  cli- 
mate is  strictly  tropical.  Formerly  sugar  was  the  chief 
product,  and  when  crossing  the  island  the  traveler  even 
now  sees  the  remains  of  many  old  sugar  mills  and 
abandoned  plantations. 

At  the  present  time,  the  important  industry  of  Ja- 
maica is  the  raising  of  bananas.  This  has  been  greatly 
developed  by  the  United  Fruit  Company,  which  owns 
or  leases  about  sixty  thousand  acres  and  takes  the  prod- 
uct from  several  thousand  additional  acres.  This  com- 
pany employs  nearly  seven  thousand  men,  and  ships 
about  five  million  bunches  of  bananas  a  year.  The 
United  Fruit  Company,  like  the  Standard  Oil  Com- 


OTHER   ISLANDS   OF   THE   CARIBBEAN  61 

pany,  is  a  distributor  rather  than  a  producer.  Its  mo- 
nopoly consists  in  its  remarkable  service  of  collecting  the 
fruit,  paying  cash,  and  selling  it  in  New  York,  Boston, 
Philadelphia,  Baltimore,  and  other  points.  Nearly 
every  day  the  United  Fruit  steamers  call  at  each  little 
port,  so  that  the  native  may  always  be  sure  of  the  most 
perfect  system  of  shipment.  Of  course  a  good  profit  is 
charged  for  such  a  service.  The  natives  receive  only 
from  twenty-five  to  fifty  cents  per  bunch  for  these 
bananas,  according  to  the  time  of  year.  The  reliability 
and  certaint}^  of  this  service  have  given  the  natives  a 
tremendous  confidence  in  this  company,  and  the  same  is 
true  in  Cuba  and  Costa  Rica,  where  it  also  does  business. 

The  company  is  now  beginning  merchandizing  and 
is  opening  stores  so  as  to  sell  goods  as  well  as  buy. 
They  probably  are  doing  this  in  order  to  have  freight 
from  the  United  States  to  the  West  Indies  as  well  as 
from  the  West  Indies  to  the  United  States.  This  policy 
should  benefit  the  people.  It  seems  to  me  that  here  is 
an  opportunity  whereby  manufacturers  may  easily 
obtain  a  foothold  in  the  West  Indies,  for  it  should  be 
possible  to  make  arrangements  with  the  United  Fruit 
Company  to  exliibit  and  sell  United  States  goods. 

Other  than  the  banana  industry,  cocoanut  raising 
seems  to  be  profitable  in  Jamaica.  As  a  large  part  of 
the  island  is  dry,  and  cocoanuts  need  less  moisture  than 
bananas,  it  is  probable  that  more  cocoanut  plantations 
will  be  started  in  the  future. 

The  principal  city  of  Jamaica  is  Kingston,  on  the 
southern  coast,  with  a  population  of  sixty  thousand. 
This  place  has  been  practically  rebuilt  since  the  earth- 
quake of  1907,  and  now  appears  as  a  modern  and  pros- 
perous city  with   a  half-decent    harbor.     Its    stores, 


62  THE  FUTURE  OF  SOUTH  AMERICA 

hotels,  government  buildings,  and  commercial  houses 
are  worthy  of  a  northern  city.  Kingston  is  the  center  of 
a  network  of  automobile  roads,  which  gives  it  a  still 
further  advantage,  such  as  its  climate  and  agricultural 
possibilities  do  not  deserve.  The  city  is  the  commercial 
center  of  Jamaica,  but  this  is  all. 

The  northeastern  part  of  the  island  is  far  more  at- 
tractive, while  the  most  beautiful  scenery  is  in  the 
center,  where  the  mountains  abound.  Land  is  fairly 
high  in  all  accessible  rainfall  portions,  averaging  from 
one  hundred  and  fifty  to  three  hundred  and  fifty  dollars 
an  acre.  Land  distant  from  the  railroad  or  coast  can 
be  purchased  for  from  five  to  fifteen  dollars  an  acre. 

Trinidad 

Trinidad  is  the  most  southerly  of  the  West  Indies, 
lying  close  to  Venezuela.  I  arrived  on  a  Saturday 
night  at  Port  of  Spain,  and  of  all  the  quiet  places  for  a 
city  of  sixty  thousand,  this  was  the  limit!  On  Sunday, 
however,  the  people  seemed  to  wake  up  a  little,  and  on 
Monday  they  really  seemed  seriously  to  consider  work. 
The  population  of  the  island,  about  three  hundred 
thousand,  is  a  mixture  of  English,  Spanish,  and  negroes, 
with  the  last-named  in  an  overwhelming  majority. 
The  situation  is  further  complicated  by  the  introduction 
of  coolies  from  India  under  an  indenture  system.  Un- 
der this  system,  if  an  English  planter  of  Trinidad  de- 
sires a  hundred  coolies,  he  provides  barracks  for  them 
and  their  families,  supplies  the  passage  money,  and 
agrees  with  the  English  Government  to  pay  and  care 
for  them  for  a  period  of  ten  years  at  about  twenty-five 
cents  a  day,  on  the  condition  that  he  is  to  have  their 


OTHER  ISLANDS  OF  THE  CARIBBEAN  63 

services  exclusively  during  these  ten  years.  At  the 
end  of  the  period,  the  coolies  are  free  to  return  home 
or  work  for  someone  else. 

Often  the  coolie  saves  enough  during  twenty  years 
to  enable  him  to  buy  a  small  plantation  of  his  own. 
Some  of  them  have  become  prosperous  and  useful  citi- 
zens, while  thousands  have  made  enough  to  return  to 
India  and  live  like  princes.  They  live  better  than  our 
negroes,  and  are  far  superior  to  them  in  morals,  intel- 
lect, and  industry. 

In  this  island  of  Trinidad  is  located  the  famous  Pitch 
Lake,  from  which  has  come  the  asphalt  that  has  paved 
so  many  of  our  streets.  In  addition  to  the  pitch,  oil  is 
now  found  on  the  island.  If  this  is  good  oil,  it  will  be 
greatly  appreciated,  for  I  have  found  that  in  most  of 
the  islands  of  the  West  Indies,  gasoline  sells  at  out- 
rageous prices,  while  all  the  coal  is  imported  from  other 
countries. 

Land  is  high-priced  in  Trinidad.  I  have  found  no 
good  plantations  for  sale  at  less  than  two  hundred 
dollars  an  acre,  and  some  owners  want  double  this 
amount.  On  the  other  hand,  the  market  is  very  nar- 
row and  it  is  almost  as  hard  to  sell  as  it  is  to  buy.  There 
is  just  enough  Spanish  blood  in  these  people  to  make 
them  good  traders.  In  fact,  a  combination  of  Indian, 
Spanish,  and  English  is  pretty  hard  to  beat.  What 
business  United  States  citizens  have  done  in  this  island 
has  usually  been  transacted  through  commission  mer- 
chants. Concerning  this  practice,  one  of  the  merchants 
in  Port  of  Spain  said : 

"Why  don't  your  manufacturers  send  their  own  men 
instead  of  depending  on  agents?  Commission  houses 
d(j  the  best  that  they  can,  but  they  cannot  afford  to 


64  THE  FUTURE  OF  SOUTH  AMERICA 

spend  time  in  pushing  the  sale  of  any  line  of  goods. 
The  average  commission  agent  gets  only  from  five  to 
ten  per  cent,  from  your  manufacturers  on  such  export 
business. 

"Hence  to  make  a  go,  they  must  get  from  two  to 
five  per  cent,  from  the  local  buyers.  This  is  very  unsat- 
isfactory all  around.  If  you  will  send  down  your  own 
men,  you  can  study  the  market.  Why,  the  Germans 
are  now  even  manufacturing  for  us  antiques  and  relics! 
They  have  their  own  men  who  learn  what  we  want, 
who  find  out  whom  of  us  to  trust,  and  they  get  the 
business." 

The  Barbados 

The  Barbados  are  commonly  called  Little  England. 
The  main  island  of  the  group  is  only  twenty-one  miles 
long  and  fourteen  miles  wide,  with  a  total  area  of  one 
hundred  and  sixty-six  square  miles.  As  the  popula- 
tion is  two  hundred  thousand,  or  about  twelve  hundred 
per  mile,  it  is  one  of  the  most  densely  populated  coun- 
tries in  the  world.  The  great  majority  of  the  people 
are  of  African  descent,  and  less  than  ten  per  cent,  are 
white.  Considering  the  great  majority  of  blacks  and 
the  intense  loyalty  of  these  people  to  England,  it  cer- 
tainly speaks  well  for  English  methods  of  colonization. 
This  island  is  fairly  healthful,  with  little  swampy  land, 
and  is  swept  by  strong  sea  breezes  day  and  night.  As 
a  result,  the  principal  industry  is  that  of  a  health 
resort.  The  temperature  of  the  winter  season  ranges 
from  seventy  to  eighty  degrees,  and  of  the  summer 
season  from  seventy-five  to  eighty-five  degrees. 

All  kinds  of  tropical  fruits  abound ;  but  the  principal 
crop  is  sugar,  the  soil  being  especially  adapted  for  the 


OTHER   ISLANDS   OF  THE   CARIBBEAN  65 

sugar-cane.  Low  prices  of  sugar  cause  the  planters  to 
turn  their  attention  to  cotton,  indigo,  and  fruits,  which 
have  been  neglected  heretofore.  But  in  a  general  way, 
the  people  are  absolutely  dependent  upon  the  sugar 
crop. 

In  the  Barbados  it  is  a  question  of  working  or  starv- 
ing, and  the  Barbadian  negro  is  the  most  industrious 
and  reliable  of  his  race  in  the  West  Indies.  In  other 
islands,  the  blacks  can  exist  independently  of  the 
plantations,  as  they  have  their  o\\ti  grounds  for  culti- 
vation, obtained  either  from  the  government  or  by 
squatter's  license,  from  which  they  derive  a  mere  liv- 
ing with  a  minimum  of  lalx)r.  In  the  Barbados,  how- 
ever, there  is  no  land  available  for  the  poor  man  to 
cultivate,  all  the  holdings  being  in  the  planter's  hands. 
There  are  no  CrowTi  lands,  and  as  yet  no  abandoned 
estates  which  can  be  squatted  upon.  Hence  the  prob- 
lem that  confronts  the  people  when  the  sugar  crop  is 
a  failure. 

All  land  suitable  for  crops  is  in  a  high  state  of 
cultivation  and  sells  at  from  two  to  three  hundred 
dollars  an  acre.  How  long  the  present  state  of  affairs 
can  continue  is  uncertain.  Either  these  negroes  will 
some  day  revolt  and  demand  land,  or  else  their  economic 
habits  will  enable  them  to  migrate  to  other  islands  and 
absorb  them.  There  are  no  mining  operations  in  the 
islands  excepting  for  a  small  product  of  pitch,  although 
there  is  said  to  be  a  large  supply  of  petroleum  beneath 
the  surface. 

The  one  port  and  commercial  city  of  account  is 
Bridgeto^\^l,  which  has  only  a  small  harbor,  where  it  is 
difficult  to  land.  Notwithstanding  the  commercial  dis- 
advantages in  this  way,  there  is  still  considerable  com- 


66      THE  FUTURE  OF  SOUTH  AMERICA 

merce,  and  the  exports  are  heavy.  The  imports  are 
not  worth  considering,  and  although  Great  Britain  con- 
simies  only  about  one  sixth  of  the  exports,  she  has 
the  advantage  of  one  half  of  the  imports.  However, 
Canada  is  developing  an  important  business  with  the 
Barbados. 

I  see  no  opportunities  for  the  American  in  the  Bar- 
bados. Not  only  are  the  people  prejudiced  in  favor  of 
the  English,  but  there  is  no  vacant  land,  the  country 
is  overfiooded  with  blacks,  and  Bridgetown,  although 
busy  and  active,  is  certainly  a  dirty,  dusty,  and  unin- 
teresting city.  In  order  that  I  may  not  seem  prejudiced 
against  the  place,  I  give  the  following  comment  from  a 
local  guidebook: 

"About  twenty-five  thousand  of  the  island's  total 
population  reside  in  Bridgetown,  but  the  stranger  land- 
ing here  for  the  first  time  might  be  excused  for  supposing 
that  fully  one  half  the  blacks  of  Barbados  had  con- 
gregated here,  for  they  fill  the  streets  and  squares,  as 
well  as  swarm  upon  the  wharves  and  sea  front  generally. 
According  to  the  universal  testimony  of  travelers,  one 
may  see  in  Bridgetown  relatively  more  white  people 
than  in  most  of  the  islands,  although  they  compose  less 
than  one  tenth  of  the  population.  One  is  jostled  in  the 
streets  by  horses,  mules,  and  donkeys,  but  the  big  black 
men  are  the  real  beasts  of  burden  and  haul  carts  con- 
taining hogsheads  of  sugar  as  though  they  weighed  but 
pounds  instead  of  tons." 

They  are  all  busy,  however,  there  being  much  less 
loafing  than  in  any  other  place  I  have  visited.  As  they 
must  work,  they  perform  their  tasks  with  good  will. 
Always  hearty  and  good-natured,  though  independent 
and  insolent  toward  the  white  people,  the  blacks  of  the 


OTHER  ISLANDS   OF   THE   CARIBBEAN  67 

Barbados  are  the  best  workers  in  the  West  Indies,  and 
as  such  are  in  great  demand  in  other  islands.'  As  al- 
ready indicated,  however,  at  present  they  would  rather 
lalx)r  in  the  Barbados  on  starvation  wages,  which  are 
do^Ti  to  twenty-five  cents  a  day  for  stalwart  men  and 
twelve  cents  for  women,  than  migrate.  How  long  this 
will  last  is  a  question. 

Martinique 

As  I  have  said,  the  islands  of  the  West  Indies  are 
simply  the  peaks  of  mountains,  all  of  which  are  the  re- 
sult of  volcanic  disturbances.  Nearly  every  island 
gradually  rises  from  the  seacoast  to  an  elevation  in  the* 
center,  which  usually  consists  of  a  high  mountain.  In 
most  cases,  the  volcanoes  are  nearly  extinct,  but  some 
of  them  are  yet  grumbling.  A  few  years  ago  one  of 
them  —  Mount  Pel^e  —  suddenly  broke  forth  and 
practically  wiped  out  the  city  of  St.  Pierre  with  thirty 
thousand  inhabitants.  At  the  present  time  there  is 
nothing  in  St.  Pierre  to  interest  any  one.  The  city  is  as 
barren  as  an  abandoned  granite  quarry,  and  reminds  one 
of  Pompeii.  The  place  is  under  police  control;  and 
even  to-day  the  ruins  are  being  searched  for  remains  of 
relatives  and  property.  Two  or  three  streets  have  been 
excavated,  and  some  half-dozen  temporary  buildings 
erected;  but  otherwise  little  has  been  done.  However, 
it  is  interesting  to  see  what  sunshine,  rain,  and  balmy 
breezes  will  accomplish,  for  vegetation  is  already 
slowly  creeping  toward  the  city,  and  sugar-cane  is  being 
raised  in  the  rich  ashes  which  fell  during  the  eruption. 
The  city  will  probably  never  be  rebuilt,  although  culti- 
vated fields  will  again  abound. 


68  THE  FUTURE  OF  SOUTH  AMERICA 

The  real  city  of  Martinique  is  the  capital,  Fort-de- 
France,  with  a  population  of  twenty-five  thousand. 
This  city  is  built  on  a  deep  bay  which  serves  as  a  French 
naval  station.  As  the  Barbados  are  English  in  fact  as 
well  as  in  name,  so  is  Martinique  French  from  every 
point  of  view.  The  government  is  French,  the  names 
are  French,  the  ways  of  the  people  are  French.  Most 
of  the  people  living  in  the  country  around  St.  Pierre 
went  to  Fort-de-France  after  the  earthquake,  and  the 
city  has  changed  more  or  less  since  that  time.  The  land- 
scape about  Fort-de-France  is  pleasing,  and  as  well-built 
roads  extend  from  the  capital  in  many  directions,  it 
may  be  made  the  place  of  departure  for  points  in  the 
"interior  and  the  Windward  Coast  country.  The  inte- 
rior has  a  number  of  small  and  interesting  towns,  and 
the  total  population  of  the  island  is  about  two  hundred 
thousand  on  an  area  of  only  three  hundred  and  eighty 
square  miles.  It  is  obvious,  therefore,  that  Martinique 
offers  few  opportunities  for  the  American,  especially  as 
most  of  the  population  is  black.  Briefly,  the  island  has 
all  the  disadvantages  of  the  Barbados  and  none  of  the 
advantages.  Moreover,  many  believe  that  Mount 
Pelee  is  not  yet  exhausted  and  may  again  break  forth. 

The  Virgin  Islands 

Of  the  Virgin  Islands,  St.  Thomas  is  the  only  one  at 
which  large  steamers  make  port.  This  island  is  thir- 
teen miles  long  and  only  three  miles  wide.  It  has  a  good 
harbor,  deep  and  landlocked  on  three  sides  by  hills. 
The  chief  port  of  this  island  is  Charlotte  Amalie,  and 
it  is  considered  to  be  one  of  the  best  in  the  West  Indies. 
The  town  is  built  on  the  hills  and  is  most  picturesque. 


OTHER   ISLANDS   OF  THE   CARIBBEAN  69 

The  houses  are  mainly  of  stone  with  red-tiled  roofs,  some 
having  tropical  gardens  attached,  and  thus  white- 
walled  houses  and  palms  and  liananas  are  interspersed 
with  lanes  and  stone  steps  which  climb  the  hills  and 
meander  through  the  gullies.  Most  of  the  population 
of  St.  Thomas  lives  in  Charlotte  Amalie;  this  numbers 
about  thirteen  thousand,  composed  of  both  the  black 
and  the  white  races.  Although  the  island  is  Danish, 
the  prevailing  speech  is  English.  The  town  once  served 
as  an  important  commercial  port,  but  shipping  has 
fallen  ofif  greatly,  owing  to  the  few  native  industries 
now  carried  on  and  the  fact  that  there  is  no  agricul- 
ture to  fall  back  upon. 

I  do  not  see  much  of  a  future  for  St.  Thomas  to  at- 
tract any  one.  The  antiquity  of  the  place,  its  old  fort, 
its  traditions  coimected  with  the  pirates  and  buccaneers 
are  pleasant  to  dream  about,  but  its  small  size  and  its 
agricultural  limitations  discourage  the  American  from 
going  to  this  island  with  the  hope  of  a  bright  business 
future. 

Another  interesting  island  is  St.  Vincent,  located  only 
thirty-one  miles  from  the  Barbados.  It  is  eighteen 
miles  long  and  eleven  wide,  with  a  total  area  of  only 
one  hundred  and  forty  square  miles.  This  small  area 
contains  almost  every  kind  of  soil  and  physical  condi- 
tion, such  as  hills  and  mountains,  ravines  and  rivers, 
together  with  precipitous  cliffs.  That  it  is  of  volcanic 
formation  does  not  need  to  be  told,  as  the  reader  will 
recall  the  terrific  explosion  of  its  Soufriere  in  1902, 
which  killed  more  than  two  thousand  people.  The  island 
has  but  one  port  at  which  steamers  call,  that  of  Kings- 
to\Mi,  on  its  leeward  coast,  a  clean,  tropical-appearing, 
self-respecting  city  of  about  five  thousand  inhabitants. 


70  THE  FUTURE  OF  SOUTH  AMERICA 

The  earthquake  laid  waste  about  a  third  of  the  island. 
To  a  certain  extent  the  land  has  been  reclaimed,  but 
the  place  is  still  the  center  of  a  very  volcanic  district. 
The  greatest  sufferers  from  the  eruptions  have  been  the 
Carib  Indians,  descendants  of  the  original  inhabitants. 
They  are  a  very  poor  people  who  are  unable  to  support 
themselves  or  to  be  of  much  service.  The  entire  popu- 
lation of  the  island,  including  these  poor  Indians,  is 
only  fifty  thousand,  and  of  this  number  less  than  one 
tenth  are  white.  The  white  population  has  steadily 
dwindled  for  years,  and  most  of  those  left  are  Por- 
tuguese. 

The  resources  of  the  island  are  more  than  sufficient 
to  satisfy  twice  its  present  population.  Many  of  the 
sugar  plantations,  and  they  once  formed  a  fertile  belt 
around  the  island,  have  been  abandoned  through  apathy 
and  indifference.  Arrowroot  is  also  cultivated,  but  the 
price  is  usually  low,  so  that  the  natives  can  no  more 
avoid  discouragement  than  can  the  manufacturers  and 
merchants  of  New  York  during  a  financial  depression. 

The  Bahamas 

Like  others  of  the  West  Indies,  the  Bahamas  were 
discovered  by  Columbus.  They  consist  of  a  group  of 
several  hundred  islands,  stretching  over  six  hundred 
miles.  The  principal  one  is  known  as  New  Providence, 
and  upon  it  is  located  the  capital,  Nassau,  mainly  a 
tourist  resort.  These  islands  are  all  of  coral  formation, 
constructed  on  the  top  of  land  only  slightly  covered 
with  water.  Had  Florida  been  a  few  feet  lower  in  ele- 
vation, it  would  have  been  only  a  great  cluster  of  islands 
like  the  Bahamas;  while  if  the  elevation  of  the  Bahamas 


OTHER  ISLANDS  OF  THE  CARIBBEAN  71 

had  been  slightly  greater,  they  would  be  a  part  of  the 
United  States  —  an  extension  of  Florida. 

There  is  little  to  see  at  Nassau  and  little  business. 
The  principal  exports  are  sponges  and  turtles,  and  if 
Uving  there  I  would  make  a  specialty  of  one  or  the  other. 
Verj'  little  is  knowni  about  either  of  these  products, 
especially  about  sponges,  and  this  industry,  therefore, 
offers  a  future  to  some  one  who  will  study  the  ages, 
habits,  methods  of  propagating,  and  other  character- 
istics of  the  sponge. 

In  addition  to  turtles  and  sponges,  baskets  are  in 
evidence,  while  the  ever-present  banana  is  also  to  be 
found;  in  fact,  some  fine  fruits  are  now  raised  in  the 
Bahamas,  especially  the  pineapple,  grapefruit,  and  co- 
coanut.  The  climate  is  especially  attractive.  Although 
warm  in  the  sun,  there  is  a  crispness  in  the  air  which 
the  other  islands  seem  to  lack.  Without  the  life-giving 
trade  winds,  Jamaica  and  the  Barbados  would  be  intol- 
erable for  North  Americans.  The  Bahamas,  however, 
apparently  have  all  the  advantages  of  the  other  more 
southerly  islands  of  the  tropics  ^^^thout  many  of  their 
disadvantages.  One  could  live  in  the  Bahamas  with- 
out deteriorating  physically,  mentally,  and  morally. 

Nassau  is  owned  by  the  English,  and  English  is  the 
common  language.  Another  advantage  is  that  enough 
white  people  live  there  to  provide  society  for  one  an- 
other; but  with  such  a  density  of  population  as  is  com- 
mon to  all  the  islands  mentioned  in  this  chapter,  I  fail 
to  see  how  their  future  will  differ  much  from  present 
conditions. 


CHAPTER  VI 

Panama 

Of  course  to  most  of  us,  "Panama"  signifies  the 
"Canal,"  but  we  should  not  forget  that  there  is  also  a 
considerable  republic  whose  sovereignty  as  a  separate 
and  independent  nation  we  guarantee,  and  which  offers 
trade  and  development  possibilities.  To  one  who  has 
read  of  the  great  engineering  problems  successfully 
solved  in  the  construction  of  the  canal,  its  present  ap- 
pearance will  prove  a  disappointment.  As  a  matter  of 
fact,  the  canal  proper  now  looks  much  less  interesting 
than  do  many  rivers  in  your  own  State.  It  appears  to 
be  simply  a  dirty  stream  of  almost  stagnant  water,  only 
some  two  to  six  hundred  feet  wide,  lying  in  the  midst 
of  a  swampy  and  uninteresting  country.  The  only  in- 
teresting portion  is  the  great  locks  and  the  Gatun  dam. 
The  locks,  however,  are  worth  seeing.  They  are  massive 
granite  structures  one  hundred  feet  high,  one  thousand 
feet  long,  and  one  hundred  feet  wide.  There  is  a  set  of 
locks  about  six  miles  from  each  end  of  the  canal.  In 
each  set  there  are  three  locks  for  ships  going  west  and 
three  for  ships  going  east.  This  makes  three  twin  locks 
in  each  set,  or  twelve  locks  in  the  entire  canal.  These 
locks  are  separated  by  great  iron  gates,  weighing  thou- 
sands of  tons  each,  all  electrically  operated.  Gatun 
Lake  makes  up  about  half  of  the  canal.  It  is  twenty 
miles  long  and  averages  about  eight  miles  wide.    The 


PANAMA 


73 


total  length  of  the  canal  is  about  forty  miles.  The  crea- 
tion of  this  connecting  link  between  the  two  great 
oceans  is  one  reason  for  the  increased  commercial  im- 
portance of  South  America  to  the  United  States,  and  the 
following  table  gives  a  clear  idea  of  the  changed  dis- 
tances which  the  canal  has  created: 


Present  routes, 
miles 

New  routes 
via  Panama 
Canal,  miles 

Saving  of 
mileage 

London  to  — 

Honolulu 

13,987 

9,499 

4,488 

San  Francisco     .... 

13,814 

8,059 

5,755 

Vancouver 

14,(314 

8,859 

5,755 

Valparaiso 

9,044 

7,397 

1,647 

New  York  to  — 

Honolulu 

13,531 

6,723 

6,808 

San  Francisco     .... 

13,358 

5,289 

8,069 

Sydney     

13,051 

9,704 

3,347 

Vancouver 

14,158 

6,089 

8,069 

Vali)araiso 

8,588 

4,627 

3,961 

New  Orleans  to  — 

Honolulu 

13,697 

6,131 

7,566 

San  Francisco     .... 

13,775 

5,197 

8,578 

Vancouver  

14,575 

5,497 

9,078 

Valparaiso 

9,005 

4,035 

4,970 

While  Cuba  is  the  largest  of  the  Central  American 
and  West  Indian  countries,  Panama  is  one  of  the 
smallest,  for  although  about  four  hundred  miles  long, 
it  averages  only  seventy  miles  in  width.  In  fact  it  is 
about  the  size  of  the  State  of  Indiana.  It  has,  however, 
a  very  extended  coast  line  which  to  a  considerable  de- 
gree compensates  for  its  small  size.  Furthermore,  while 
Cuba  is  the  nearest  to  us,  Panama  is  the  farthest  away 
of  any  of  these  countries.    It  is  the  most  southerly  of  the 


74     THE  FUTURE  OF  SOUTH  AMERICA 

Central  Americas.  The  country  of  Panama  is  crooked, 
like  the  letter  "S."  The  canal  is  located  in  about  the 
central  portion  in  a  strip  of  land  ten  miles  wide,  known 
as  the  Canal  Zone,  which  is  the  absolute  property  of  the 
United  States.  For  this  land  Panama  was  paid  ten 
million  dollars  in  gold  in  addition  to  the  forty  million 
dollars  which  we  paid  the  French  Canal  Company.  We 
also  pay  Panama  two  hundred  and  fifty  thousand  dollars 
a  year  rental.  But  here  comes  one  difficulty.  Practi- 
cally all  the  business  of  the  Panama  nation  is  carried  on 
and  certainly  nearly  all  the  intelligent  people  live  in 
the  cities  of  Colon,  on  the  Atlantic,  and  Panama  City, 
on  the  Pacific.  Yet  these  two  cities  are  almost  within 
the  Canal  Zone,  which  is  under  United  States  super- 
vision, and  which  has  certain  control  of  sanitary, 
police,  and  other  matters. 

But  this  is  not  the  worst  of  the  situation.  Ameri- 
cans and  others  going  to  this  new  country  have  started 
to  build  two  new  cities  adjoining  the  old,  and  it  is  diffi- 
cult to  tell  where  the  old  end  and  where  the  new  begin. 
The  new  American  city  adjoining  Colon  is  called  Cris- 
tobal. The  new  American  city  adjoining  Panama  is 
called  Balboa.  In  these  two  new  cities  are  the  great 
docks,  warehouses,  and  public  buildings.  The  results 
of  this  complicated  situation  may  some  time  become 
embarrassing.  Not  only  does  much  competition  exist 
along  many  different  lines,  but  the  new  cities  are  grow- 
ing much  more  rapidly  than  are  the  old  ones. 

The  general  impression  is  that  the  weather  of  the  Isth- 
mus is  terribly  unhealthful.  We  think  of  the  tremen- 
dous rainfall,  amounting  to  about  one  hundred  and 
thirty  inches  a  year,  which  is  three  times  the  rainfall  of 
New  England  and  our  central  west.    Knowing  that  the 


PANAMA  75 

farther  south  one  goes  the  hotter  it  is,  we  naturally 
think  it  must  be  frightfully  hot  in  Panama.  It  is  true 
that  the  rainfall  in  Colon  is  very  heavy,  but  the  heat 
is  not  excessive.  It  is  not  much  hotter  there  in  summer 
than  it  is  in  winter.  When  the  sun's  raj^s  (in  June)  are 
at  their  most  northern  vertical  point,  they  are  falling 
at  practicall}'  the  same  angle  on  Panama  and  Phila- 
delphia; while  during  our  spring,  when  the  sun's  rays 
are  absolutely  vertical  over  Panama,  the  angle  is  not 
enough  more  direct  to  make  a  great  difference  in  the 
climate. 

The  fact  is  that  it  is  warm  in  Panama  all  the  year 
long.  The  hottest  weather  there  is  during  our  spring- 
time, but  during  June,  July,  and  August  it  is  not  any 
hotter  in  Panama  than  in  the  United  States.  The  great 
danger  in  tropical  countries  comes  from  excessive  rains 
or  swampy  low  lands. 

Only  those  who  visited  Colon  and  Panama  City 
a  dozen  or  more  years  ago  can  realize  the  tremendous 
improvement  in  the  health  conditions  and  comfort  of 
these  cities.  When  I  was  first  down  there,  I  was  walk- 
ing along  a  fine  macadam  street  in  Colon  with  a  gentle- 
man who  told  me  that  eight  years  before  the  mud  and 
water  in  this  street  had  been  a  foot  deep. 

Said  he:  "The  sidewalks  consisted  simply  of  rail- 
road ties  laid  crosswise.  We  would  step  from  one  of 
these  to  another  to  get  out  of  the  water  and  filth.  One 
evening  I  missed  my  step,  and  instead  of  putting  my 
left  foot  on  the  next  railroad  tie,  I  put  it  directly  on 
the  back  of  a  crocodile !  You  have  no  idea  of  the  condi- 
tions  then  existing.  The  death  rate,  which  is  now  only 
about  sixteen  per  thousand,  was  then  about  fifty  per 
thousand." 


76     THE  FUTURE  OF  SOUTH  AMERICA 

Most  people  make  the  mistake  of  thinking  that  South 
America  is  directly  south  of  North  America,  and  that 
Panama  is  south  of  our  central  west.  The  truth  is  that 
South  America  is  east  of  North  America  and  Panama 
City  is  directly  south  of  Buffalo.  Valparaiso,  Chile,  on 
the  west  coast  of  South  America,  is  directly  south  of 
Boston,  both  being  approximately  on  the  seventieth 
meridian.  The  canal  does  not  run  east  and  west; 
when  a  steamer  enters  it  at  Colon,  it  goes  through 
southeast  to  the  Pacific  Ocean. 

Owing  to  the  strategic  location  of  Panama  and  its 
value  to  the  United  States  Government,  it  should  con- 
tinually grow  in  importance.  Its  location  is  especially 
well  adapted  for  trading  purposes,  and  opportunities 
are  to-day  being  rapidly  seized  by  the  Chinese,  who 
make  fine  merchants.  Even  in  Jamaica,  which  has 
been  owned  by  the  English  for  two  hundred  years,  over 
eighty  per  cent,  of  the  stores  are  operated  by  Chinese. 

The  location  of  Panama  tends  to  make  it  a  very  cos- 
mopolitan place.  In  a  short  walk  one  may  see  at  least 
twelve  nationalities  —  Americans,  English,  French, 
Chinese  with  their  pigtails,  Hindus  wearing  combs, 
and  real  Indians  from  the  interior;  then  there  are  Span- 
iards, Germans,  and  Dutch,  together  with  various 
grades  and  varieties  of  negroes.  There  are  three  great 
cemeteries  in  Panama  —  the  Christian,  the  Hebrew, 
and  the  Chinese  —  in  which  graves  are  rented  instead 
of  sold.  The  form  of  government  is  almost  identical 
with  that  of  the  United  States.  The  population  is  esti- 
mated at  about  three  hundred  and  fifty  thousand,  of 
which  fifty  thousand  are  Indians  and  one  hundred 
thousand  negroes. 

The  city  of  Panama-Balboa  was  founded  in  1673.   In 


PANAMA  77 

1773  it  had  a  population  of  about  eight  thousand,  and 
to-day  has  about  forty  thousand.  The  city  of  Colon- 
Cristobal  was  founded  in  1850,  when  the  Panama  Rail- 
road was  started.  In  1904,  when  the  United  States 
engineers  went  there,  the  population  was  ten  thousand, 
about  nine  thousand  of  them  living  in  houses  perched 
on  stilts.  The  population  to-day  is  about  twenty 
thousand. 

The  principal  industry  of  the  republic  is  trading  in 
the  cities,  and  cattle  and  cocoanut  raising  in  the  country 
districts.  Panama  has  land  of  all  altitudes.  There  is 
a  mountain  range  of  from  four  to  seven  thousand  feet 
in  height  in  Darien,  and  in  the  province  of  Chirique  are 
mountains  eleven  thousand  feet  high.  Although  the 
interior  has  been  little  explored,  it  is  believed  that  there 
are  good  mineral  deposits.  There  are  also  timber  tracts 
and  some  water-power  possil^ilities. 

What  North  Americans  are  doing  in  the  thirty  thou- 
sand square  miles  of  the  Republic  of  Panama  is  a  story 
about  which  comparatively  little  has  been  said  or  even 
kno^ra  to  the  world  at  large.  The  North  Americans  in 
the  cities  do  not  come  into  close  contact  with  the  people 
of  the  republic.  They  live  apart;  neither  speaks  the 
other's  language  to  any  great  extent,  nor  tries  to  do  so. 
This  is  doubtless  one  reason  why  our  people  are  no  more 
popular  with  Panamanians  to-day. 

In  looking  at  the  business  and  life  of  the  Republic  of 
Panama,  it  is,  unfortunately,  necessary  to  exclude  the 
American  foreigners  from  consideration.  Except  for 
the  one  connection  existing  through  the  desire  of  the 
native  people  and  merchants  to  share  in  the  benefits  of 
the  buying  power  of  the  canal  wages,  there  is  little  other 
interest  in  them.    Even  this  point  of  contact  is  more 


78     THE  FUTURE  OP  SOUTH  AMERICA 

apparent  than  real,  for  the  United  States  commissaries 
supply  most  of  the  needs  of  their  employees.  The  native 
and  local  merchants,  therefore,  must  fall  back  on  the 
tourist  trade,  for  neither  American  tourists  nor  even 
resident  Americans,  not  of  the  canal  staff,  have  any 
privileges  of  Uncle  Sam's  commissaries.  Leaving  out 
of  consideration  the  Americans  in  the  Zone  because  of 
the  canal,  and  turning  to  the  republic  itself,  and  what 
part  Americans  play  in  its  business  activities,  let  us 
look  first  at  the  cities  of  Panama  and  Colon. 

In  these  two  cities,  one  finds  little  that  is  familiar. 
Each  has  a  branch  of  the  International  Banking  Cor- 
poration of  New  York,  managed  by  United  States  citi- 
zens. Panama  has  a  large  firm  of  North  American 
contractors,  a  firm  of  dentists,  of  lawyers,  and  a  handful 
of  business  enterprises,  for  the  most  part  small.  A  doctor 
from  our  States  is  the  head  of  the  local  hospital  (San 
Tomas  Hospital).  One  must  hunt  for  most  of  these, 
however,  in  a  city  that  is  Latin-American  in  speech, 
customs,  and  traditions.  There  is  a  tramline  backed  by 
North  American  capital.  Colon  has  an  "  American  " 
trading  firm,  dealing  largely  in  lumber  and  cocoanuts. 

Judging  from  these  cities,  one  would  say,  if  there  is 
any  activity  by  our  people  in  Panama,  it  must  be  out 
in  the  country.  But  aside  from  the  extensive  banana 
plantations  of  the  United  Fruit  Company,  at  Bocas  del 
Toro,  on  the  Atlantic  side,  with  a  good-sized  American 
staff,  thorough  search  reveals  little  American  activity. 
As  to  just  what  is  being  done  by  other  interests,  I  quote 
from  a  letter  from  one  of  the  best  posted  men  in  the 
United  States  on  Panamanian  industries: 

"The  Pacific  coast  of  Panama,  by  reason  of  its  more 
comfortable  climate,  is  likely  to  prove  the  most  attrac- 


Copi/rtgtit  hy  I  ndrnvood  dk  Underwood 

INDIAN   DUGOUTS  ON'  THE  CHAGRES   RIVER   BRINGING 
BANANAS  TO   GATUN,  PANAMA 


PANAMA  79 

tive  to  Americans,  as  well  as  others,  both  foreign  and 
native,  and  it  is  on  this  coast  that  the  greatest  general 
development  is  likely  to  be  found. 

"An  American  rmis  a  line  of  small  boats  from  Panama 
City  to  Pacific  ports  of  Panama,  carrying  cargo  and 
passengers,  and  doing  a  trading  business.  In  Chiriqui 
Province,  near  the  Costa  Rican  border,  the  Panama 
Government  is  building  a  fifty-two-mile  electric  rail- 
road, to  connect  David  and  several  small  interior 
to^^Tls  with  the  seaport  to^vTi  of  Pedregal.  A  local 
American  contracting  firm  is  doing  the  work.  There 
are  already  a  few  American  ranchers  in  this  district, 
which  on  the  low  lands  is  noted  for  cattle  raising, 
and  higher  up,  back  from  the  coast,  for  its  fine 
coffee. 

"On  the  Pacific  coast,  between  Panama  City  and  the 
Costa  Rican  border,  at  various  points,  are  found  a 
number  of  Americans  engaged  in  cocoanut  raising  on  a 
considerable  scale.  An  American  company  has  two 
thousand  acres  in  this  fruit.  Another  has  five  hundred 
acres,  and  there  are  several  others  smaller.  Americans 
are  also  planting  cocoanuts  on  the  Atlantic  coast,  one 
being  a  Philadelphia  firm,  with  property  near  Bocas 
del  Toro.  A  cocoanut  company,  o^vned  by  local  capital, 
largely  American,  is  being  operated  near  the  San  Bias 
coast,  which  is  between  Colon  and  the  Colombian 
coast. 

"The  country  of  the  republic  is  primarily  agricul- 
tural, and  cattle  raising  in  the  Chiriqui  district  and 
cocoanuts  on  l)oth  coasts  are  the  most  logical  forms  of 
development.  Americans  thus  far  are  monopolizing  the 
latter,  and  likely  to  continue  to  do  so,  for  Panama,  of  all 
tropical  countries  in  the  world,  grows  the  best  and  high- 


80      THE  FUTURE  OF  SOUTH  AMERICA 

est-priced  cocoanut.  This,  coupled  with  the  advantage 
of  traffic  conditions,  by  reason  of  the  canal,  makes  it 
strategically  the  foremost  of  all  countries  for  this  im- 
portant and  rapidly  increasing  industry.  Better  ship- 
ping facilities  on  the  Pacific  coast  are  likely  to  see 
increasing  industry  on  the  part  of  Americans  as  well 
as  others  during  the  next  few  years." 

I  know  but  little  about  cocoanuts,  but  it  has  seemed 
to  me  that  this  is  a  coming  business.  During  the  past 
twenty  years  I  have  watched  the  development  of 
orange  groves,  rubber  plantations,  and  the  like.  It  is 
known  that  most  of  those  who  get  into  such  things  in  the 
early  stages  and  have  had  sense  enough  to  sell  out  as 
soon  as  the  industry  becomes  popular,  have  made  con- 
siderable money.  It  has  looked  as  if  the  cocoanut 
industry  would  have  the  same  general  history,  and  I 
believe  that  certain  good  opportunities  exist  to-day  in 
Panama  for  its  development. 

I  further  believe  that  those  who  now  buy  the  actual 
land  and  personally  attend  to  the  planting  and  develop- 
ment of  the  trees  should  make  considerable  money, 
provided  they  sell  out  when  the  industry  becomes 
popular.  This  last  suggestion,  however,  is  very  im- 
portant for  readers  to  remember.  The  day  will  come 
when  cocoanut  planting  is  overdone,  the  same  as 
have  been  rubber  planting,  the  development  of  orange 
groves  and  pineapples.  At  that  time  the  temptation 
to  buy  more  cocoanut  land,  and  especially  to  hold 
what  land  one  has,  will  be  very  strong.  The  wise  in- 
vestor, however,  will  not  only  insist  on  taking  his 
profit  at  that  time,  but,  to  be  sure  of  his  profit,  should 
take  it  before  that  time  comes.  Moreover,  one  should 
be  very  sure  that  the  land  in  which  he  invests  is  prop- 


PANAMA  81 

erly  located  and  under  an  honest  and  intelligent 
management. 

Most  of  our  people  think  of  coeoanut  palms  merely 
as  a  highly  ornamental  feature  of  the  tropical  land- 
scape, and  have  a  vague  idea  that  their  fruits  are 
chiefly  useful  in  furnishing  food  to  the  people  who 
dwell  l)eneath  them.  We  do  not  realize  that  coeoanut 
oil,  extracted  from  the  meat  of  the  nuts,  forms  the 
basis  of  nearly  all  high-grade  soaps;  but  this  is  the 
case,  and  the  demand  for  it  for  soap-making  purposes 
is  rapidh'-  increasing. 

There  is  now  a  still  larger  and  more  urgent  demand, 
due  to  the  discovery  that  from  it  can  be  made  excel- 
lent substitutes  for  butter  and  lard.  So  great  is  the 
world's  need  of  food  fats  that  the  available  supply 
derived  from  animals  is  no  longer  adequate,  and  pres- 
ent indications  are  that  the  prices  of  such  fats  will 
steadily  rise,  in  proportion  to  the  increased  demand 
for  meats.  Coeoanut  oil  is  especially  suited  to  fill  this 
need,  because  of  its  comparative  cheapness  and  its 
absolute  freedom  from  the  disease  germs  with  which 
animal  fats  are  liable  to  be  uifected.  Food  products 
made  from  it  keep  for  a  long  time  without  deterioration. 
Many  people  believe  that  coeoanut  butter  and  lard 
are  destmed  to  take  the  place  of  animal  butter  and 
lard.  Recently  coeoanut  oil  has  been  used  as  the  basis 
for  the  manufacture  of  a  "condensed  milk"  said  to  be 
chemically  indistinguishable  from  condensed  cow's 
milk,  and  it  is  said  that  an  excellent  coeoanut  oil 
"cheese "  will  shortly  be  placed  on  the  market.  Cocoa- 
nut  butter  and  lard  are  easily  digested.  The  butter 
is  not  open  to  the  aesthetic  objection  entertained  by 
many  persons  toward  so-called  "oleomargarine"  made 


82      THE  FUTURE  OF  SOUTH  AMERICA 

from  animal  fats,  while  the  lard  is  highly  appreciated 
by  Mohammedans,  whose  religion  forbids  their  using 
hog  products. 

Copra  consists  of  the  dried  meat  of  cocoanuts,  arid 
from  it,  by  the  use  of  heat  and  pressure,  cocoanut 
oil  is  obtained.  The  world's  consumption  of  copra 
has  increased  from  372,500  tons  in  1909  to  about 
600,000  tons  to-day,  and  the  imports  of  cocoanut  oil 
into  the  United  States  have  grown  from  21,650  tons 
in  1911  to  about  40,000  tons.  For  many  years  the 
demand  for  cocoanut  oil  has  increased  more  rapidly 
than  has  the  supply,  with  the  result  that  prices  have 
trended  quite  steadily  upward.  The  new  and  impor- 
tant uses  recently  found  for  this  valuable  product  may 
favor  a  continuance  of  this  movement.  Copra  is  a 
product  which  can  be  shipped  to  Europe  or  the  United 
States.  Its  price  is  governed  in  the  long  run  by  the 
conditions  which  determine  the  price  of  cocoanut  oil. 

While  cocoanuts  will  grow  at  altitudes  from  sea 
level  to  three  thousand  feet  above  it,  some  regions  and 
soils  are  much  better  adapted  to  their  production  than 
are  others.  Drought  seriously  affects  the  setting  of 
the  young  nuts,  and  if  long  continued,  and  severe,  may 
even  kill  many  of  the  leaves.  Although  an  abundant 
and  evenly-distributed  rainfall  is  highly  important, 
water  must  not  stand  around  trees  long  enough  to  stag- 
nate, or  it  will  harm  them.  Trees  freely  exposed  to 
strong  breezes  and  moderate  winds  often  do  better  than 
those  from  which  air  currents  are  cut  off,  but  violent 
windstorms  throw  down  the  young  nuts,  injure  the 
leaves,  and  if  of  very  great  intensity,  may  even  uproot 
the  trees  themselves.  While  cocoanut  trees  will  live  and 
produce  fairly  well  both  in  pure  beach  sand  and  in  stiff, 


PANAMA  83 

hea\'y  clay,  if  other  conditions  are  favorable  they  do 
best  in  a  light  rich  soil  near  the  ocean. 

The  principal  drawback  to  cocoanut  raising  seems 
to  be  the  "rot"  which  attacks  different  sections  at  dif- 
ferent times,  and  which  within  a  year  will  kill  an  entire 
grove  of  trees.  The  uncertainty  about  this  "rot" 
makes  the  raising  of  cocoanuts  a  speculation  rather 
than  an  investment.  If  wonderfully  rich  soil  bears  a 
rank  gro\Al:h  of  vegetation,  heavy  clearing  operations 
may  continually  be  necessary;  but  if  the  "rot"  is 
avoided,  the  increased  returns  during  a  single  year 
after  a  plantation  comes  into  bearing  will  far  more 
than  repay  the  additional  first  cost  involved. 

Concerning  further  details,  I  quote  from  the  Honor- 
able Dean  C.  Worcester,  former  Secretary  of  the 
Interior  of  the  Philippine  Islands,  who  is  one  of  the 
best-informed  men  in  the  world  on  cocoanuts.    He  says : 

"Cocoanut  trees  suffer  comparatively  little  from 
insect  attacks  unless  growing  near  sugar  plantations 
where  the  rhinoceros  beetle  breeds  in  the  waste  from  the 
cane  mills.  Money  invested  in  a  properly  situated  and 
well-estabhshed  cocoanut  plantation  is  like  money  in 
the  bank,  except  that  the  rate  of  interest  obtained  is 
far  larger  than  any  bank  will  pay.  The  trees  attain  to 
extraordinary  age  without  losing  their  productivity, 
and  one  who  plants  a  cocoanut  grove  is  providing  for 
one's  children's  children. 

"There  is  no  special  harvest  time,  bringing  with  it  a 
rush  of  work,  and  calling  for  the  temporary  employ- 
ment of  a  large  additional  number  of  laborers.  Under 
favorable  climatic  conditions  flowers  and  mature  nuts 
are  found  on  the  same  tree.  The  ripe  nuts  should  be 
harvested  every  three  months,  and  with  a  force  of  la- 


84  THE   FUTURE  OF  SOUTH  AMERICA 

borers  adequate  to  cover  the  entire  plantation  during 
this  period,  harvesting  becomes  a  continuous  opera- 
tion, giving  the  laborers  steady  employment  and  dis- 
tributing the  receipts  uniformly  throughout  the  year. 

"The  returns  per  acre  from  a  good  cocoanut  planta- 
tion are  very  large.  Where  the  soil  is  rich,  not  more  than 
fifty  trees  should  be  planted  to  the  acre.  Adult  culti- 
vated trees  will  average  nearly  a  hundred  nuts  to  the 
tree,  or  about  5,000  to  the  acre,  per  year.  Good  nuts 
give  five  piculs  of  copra  to  the  thousand,  and  an  acre 
will  yield  gross  receipts  of  $125,  with  the  selling  price 
of  high-grade  copra  at  $5  per  picul.  I  allow  a  total  gross 
cost  per  acre  per  year  of  $35.15  on  2,400  acres  in  full 
production.  This  includes  deterioration  on  plant  and 
equipment,  and  is  a  liberal  estimate." 

As  the  future  of  Panama  depends  so  greatly  upon 
its  relations  to  the  United  States,  I  arranged  for  a  con- 
ference with  the  President  of  the  Republic. 

"It  is  not  you  'Americans'  that  we  do  not  like," 
said  he,  "but  rather  your  ways  of  doing  things.  There 
is  a  feeling  that  Americans  come  down  here  for  what 
they  can  get,  instead  of  for  what  they  can  do.  Too 
frequently  your  countrymen  want  concessions  to  sell 
rather  than  to  work.  You  Yankees  are  naturally  trad- 
ers, and  not  producers.  The  people  of  South  America 
want  Americans  to  come  here  to  raise  crops  and  not  to 
raise  prices." 

This  is  the  answer  which  he  gave  in  reply  to  my  ques- 
tion: "Why  is  it  that  the  people  of  Central  and  South 
America  do  not  like  us  North  Americans?"  I  ex- 
plained to  him  that  many  of  my  countrymen  returning 
from  Latin  America  seem  very  much  disappointed, 
claiming  that  citizens  of  the  United  States  are  not  well 


PANAMA  85 

treated,  that  the  different  governments  are  rotten  with 
graft,  that  justice  must  be  purchased,  and  that  the 
police  system  in  every  country  is  a  farce. 

I  had  already  learned  why  North  Americans  are  less 
popular  than  Germans.  The  Germans  send  young 
men  over  to  South  America  before  their  habits  are 
formed.  These  young  men  not  only  learn  the  language 
but  adopt  the  customs  of  the  Latin-Americans.  They 
grow  up  with  the  j'outh  of  Latin  America  and  become 
their  friends.  IManufacturers  in  the  United  States, 
however,  do  the  opposite  thing.  The  habits  of  our  men 
are  already  formed  when  they  get  to  these  other 
lands,  and  many  of  them  attempt  to  do  business  with- 
out even  knowing  the  language,  let  alone  conforming 
to  the  customs  of  the  people. 

Concerning  this  question  of  friendship,  the  President 
said: 

"The  nature  of  Latin- Americans  is  entirely  different 
from  that  of  your  people.  We  think  a  great  deal  of 
friendship.  Perhaps  we  expect  too  much  from  you. 
We  know  you  are  great  and  powerful;  but  you  are  not 
willing  to  give  us  the  treatment  which  a  man  will  give 
his  sister.  A  man  will  not  compete  with  his  sister. 
You  would  not  think  of  treating  your  sister  or  your 
daughter  as  you  are  treating  us.  A  good  brother  loves 
his  sister,  and  we  want  you  to  love  us.  We  admire 
you,  and  it  is  only  a  step  from  admiration  to  love. 
W^e  are  now  prepared  to  take  this  next  step;  but  are 
you? 

"Every  small  nation  pines  for  friendship  as  does  an 
individual.  Owing  to  our  language  and  history,  it 
would  seem  natural  that  we  look  to  Spain;  but  Spain  is 
now  but  a  memory.     For  business  reasons,  it  might 


86  THE  FUTURE  OF  SOUTH  AMERICA 

seem  wise  for  us  to  appeal  to  England,  France,  or  Ger- 
many; but  at  present  this  is  impossible.  Therefore  we 
turn  to  you.  Remember,  however,  that  it  is  not  so 
much  your  money  and  trade  that  we  want  as  it  is  your 
love  and  confidence.  This  may  be  incomprehensible 
to  your  hard-headed  commercial  men;  but  it  is  abso- 
lutely true.  Moreover,  it  is  a  truth  which  your  people 
must  comprehend  before  we  shall  ever  really  like  you 
—  I  mean,  before  we  shall  like  your  ways." 

Thereupon  the  President  stood  up  and  put  his  arms 
affectionately  around  our  able  United  States  minister, 
who  was  embarrassed  for  a  moment,  but,  like  the  true 
diplomat  he  was,  made  no  resistance. 

Referring  to  this  incident,  a  prominent  New  York 
lawyer  who  accompanied  me  that  day  told  me,  after  we 
left  the  palace,  of  an  experience  he  had  in  the  same  line. 
Some  few  years  ago,  he  won  a  case  for  Venezuela,  and 
the  first  time,  after  the  verdict,  that  the  minister  from 
that  country  met  my  New  York  friend  happened  to  be 
about  one  o'clock,  on  Wall  Street,  just  as  thousands  of 
people  were  going  to  their  luncheon.  But  the  number 
of  spectators  made  no  difference  to  the  distinguished 
Venezuelan.  He  threw  his  arms  about  the  lawyer  and 
covered  his  face  with  kisses. 

Of  course,  this  custom  seems  absurd  to  a  practical, 
cold-blooded  citizen  of  North  America;  but  I  am  not 
telling  of  it  to  amuse  any  one.  I  mention  it  only  to  help 
readers  of  this  book  to  grasp  a  fundamental  character- 
istic of  the  Latin-Americans.  Furthermore,  let  me  add 
that  until  we  reach  a  point  where  such  signs  of  affection 
arouse  within  us  admiration  instead  of  amusement,  we 
shall  not  have  much  influence  in  South  or  Central 
America. 


PANAMA  87 

"WTien  one  considers  our  investment  of  four  hundred 
million  dollars,  which  has  caused  both  the  birth  and  the 
boom  of  the  Republic  of  Panama,  it  is  at  first  inconceiv- 
able that  the  people  there  are  not  more  grateful.  In 
1904,  when  we  went  there,  the  isthmus  was  one  of  the 
most  unhealthy  spots  on  the  globe,  and  both  Panama 
on  the  Pacific  and  Colon  on  the  Atlantic  were  miser- 
able little  toAVTis.  To-day,  the  death  rate  of  Panama  is 
less  than  that  of  Pennsjdvania,  while  the  two  cities 
named  have  doubled  in  size,  usefulness,  and  attractive- 
ness. 

Moreover,  not  only  did  the  Republic  of  Panama  re- 
ceive from  us  ten  million  dollars  in  gold  (over  half  of 
which  is  still  invested  in  New  York  real  estate),  but  we 
give  them  an  annuity  of  two  hundred  and  fifty  thousand 
dollars  a  year.  I  asked  President  Porras  just  what 
things  now  stand  between  the  two  nations,  and  he 
cited  four.     Said  he: 

"First.  Some  of  you  Americans  have  been  very 
sharp  with  us.  I  often  wonder  whether  we  see  the  best 
of  your  business  people  dowm  here.  We  see  your  great 
military  men ;  but  do  we  meet  your  great  financial  men? 
We  want  to  love  and  trust  you.  We  do  not  want  to  feel 
that  we  must  watch  you  at  every  turn. 

"Secondly.  We  feel  that  your  commission  depart- 
ment is  unjustly  competing  with  us.  If  our  merchants 
ask  extraordinary  prices,  or  do  not  sell  good  goods, 
your  government  may  be  justified  in  competing  with 
us;  but  not  otherwise.  Every  man  doing  business  is 
entitled  to  a  fair  profit.  What  chance  have  our  mer- 
chants, or  even  our  entire  little  republic,  in  competi- 
tion with  a  great  nation  like  yours? 

"Thirdly.   We  feel  that  the  Panama  Railroad,  which 


88      THE  FUTURE  OF  SOUTH  AMERICA 

is  owned  and  run  by  your  government,  is  being  operated 
extravagantly,  and  that  our  people  are  being  forced  to 
pay  the  bills.  The  fares  are  five  cents  a  mile.  The 
freight  charges  are  high.  The  methods  are  sometimes 
very  arbitrary.  You  seem  to  show  us  Panamanians 
very  little  consideration.  Again  I  ask  you  to  remind 
your  readers  that  we  are  a  little  nation,  and  that  you 
are  great  and  strong.  Should  not  you  therefore  be  all 
the  more  careful  to  be  just  and  fair? 

''Fourthly.  We  ask  you  to  keep  your  towns  of  Bal- 
boa and  Cristobal  for  the  exclusive  use  of  the  canal 
employees.  Of  course,  when  we  made  our  treaty  with 
you,  we  never  dreamed  that  you  would  start  these  two 
American  cities.  We  supposed  the  Panama  Repubhc 
would  have  the  benefit  of  all  the  growth  coming  from 
the  canal.  Here  is  where  you  fooled  us.  Very  well; 
this  is  done.  But  do  not  carry  it  too  far.  Do  not  rob 
us  of  taxes  by  permitting  companies  to  locate  their 
offices  in  the  Canal  Zone.  Keep  this  strip  of  territory 
exclusively  for  active  employees  of  your  government. 

"These  are  four  specific  grievances  which  are  sure 
to  cause  trouble  if  not  remedied.  But,  most  of  all,  such 
things  cause  us  to  fear  you  and  your  government.  We 
wonder  if  every  year  you  will  do  something  still  more 
arbitrary.  We  are  worried  perhaps  even  more  by  the 
fear  of  what  you  may  do  than  by  what  you  have  done." 

There  are  two  reasons  for  studying  conditions  in 
Panama,  namely: 

1.  Panama  is  the  one  nation  on  the  American  conti- 
nent with  which  the  United  States  has  direct  influence, 
backed  by  an  iron-clad  treaty  which  was  prepared  by 
the  Honorable  Elihu  Root.  In  this  treaty,  we  not  only 
secure  absolute  control  of  the  Canal  Zone,  a  strip  forty 


PANAMA  89 

miles  long  and  ten  miles  wide,  but  we  also  guarantee  the 
sovereignty  of  the  Republic  of  Panama. 

2.  Panama  has  the  best  strategic  position  of  all  the 
Central  and  South  American  republics,  and  yet  is  the 
least  developed.  Although  it  has  only  the  area  of  In- 
diana, it  has  an  average  length  of  four  hundred  and 
fifty  miles  —  equal  to  the  distance  between  Boston  and 
Baltimore  —  a  coast  line  of  nearly  a  thousand  miles  — 
or  alx)ut  one  third  the  total  Atlantic  and  Pacific  sea- 
board of  the  United  States. 

Concerning  these  two  features,  the  President  said  to 
me: 

"The  Republic  of  Panama  offers  to  the  citizens  of 
your  country  the  greatest  opportunity  imaginable. 
Not  only  are  your  relations  with  our  government  such 
as  should  insure  protection  to  your  investments,  and 
even  prevent  revolutions,  but  the  opportunities  here 
are  marvelous.  Here  we  are  located  at  the  meeting  of 
the  world's  two  greatest  oceans  and  two  great  conti- 
nents. Here  nature  designed  should  be  located  the 
world's  greatest  city.  Here  should  be  the  market  place 
for  the  peoples  of  the  east  and  the  west,  the  north  and 
the  south. 

"Nature  has  been  l)ountiful  to  us,  giving  us  a  wonder- 
ful climate,  an  abundant  rainfall,  and  everything  that 
goes  to  make  an  industrial  nation.  We  have  coal,  iron, 
and  other  minerals,  great  timber  forests,  and  immense, 
undeveloped  water  power.  All  we  now  need  is  affec- 
tion and  capital,  to  make  the  rose  blossom  where  now 
the  cactus  flourishes. 

"But  what  do  you  do?"  continued  the  President. 
" Do  you  grasp  this  great  opportunity?  No;  instead  of 
sending  to  us  farmers,  you  send  only  soldiers;   instead 


90  THE   FUTURE  OF  SOUTH  AMERICA 

of  shipping  seeds  for  our  fields,  you  forward  only  shells 
for  your  guns.  Your  country  is  not  in  any  degree  de- 
veloping the  immense  industrial  and  commercial  pos- 
sibilities of  our  republic.  Apparently  you  are  interested 
in  developing  here  only  a  strong  naval  and  military 
station  such  as  England  has  at  Gibraltar.  You  seem 
to  look  at  everything  from  a  military  point  of  view. 
Whether  our  congress  considers  railroads,  or  other  de- 
velopment plans,  your  only  question  is,  how  will  it 
affect  your  defenses  of  the  canal? 

"And  yet,  what  do  these  defenses  amount  to?  Noth- 
ing, absolutely  nothing.  Your  fortifications  may  be  of 
use  in  preventing  the  entrances  to  the  canal  from  being 
the  first  places  captured.  Even  this,  however,  is  de- 
batable. To-day  your  ships  have  guns  that  will  fire 
farther  than  the  guns  in  these  fortifications.  Is  there 
any  reason  why  Japan  or  any  other  nation  should  not 
have  just  as  powerful  guns  in  its  navy  as  have  you? 
If  so,  is  there  any  reason  why  a  hostile  force  could  not 
silence  the  guns  which  you  are  placing  at  the  entrances 
to  the  canal?  With  your  expensive  coast  line  and  nu- 
merous seaports  to  protect,  your  navy  could  not  afford 
to  maintain  down  here  a  sufficient  force  to  guard  these 
entrances. 

"But  assuming  that  an  enemy  could  not  take  these 
fortifications,  what  would  prevent  him  from  landing 
troops  on  the  shore  and  marching  inland?  Moreover, 
your  task  is  not  simply  to  prevent  the  canal  from  being 
captured,  but  rather  from  being  put  out  of  commission. 
To  think  that  you  could  keep  an  enemy  from  sending 
two  or  three  shells  into  these  locks  is  utterly  foolish. 
I  repeat  that  your  defenses  are  as  nothing,  absolutely 
nothing." 


PANAMA  91 

And  then  the  President  turned  to  me  and  said 
earnestly : 

"How  much  better  for  your  country  if  you  would 
spend  on  industrial  development  in  Panama  at  least  a 
part  of  these  millions  which  you  are  spending  on  mili- 
tary work !  Here  we  have  great  resources.  If  you  would 
help  us  develop  our  soil,  harness  our  water  powers,  open 
our  mines  and  market  our  lumber,  great  profit  would 
accrue  to  you  and  to  us  also.  Here  is  your  great  op- 
portunity, and  I  ask  you  to  repeat  this  message  of  mine 
to  your  friends  in  the  United  States.  Tell  them  that  al- 
though the  millions  which  they  are  spending  upon  for- 
tifications must  be  as  nothing,  either  in  case  of  war  or 
of  peace,  every  penny  invested  in  the  development  of 
the  country  will  return  to  them  many  fold." 

Panama  was  known  to  the  Europeans  long  before 
the  Pilgrims  set  foot  on  Plymouth  Rock,  and  even  in 
those  early  days  the  importance  of  a  direct  westward 
route  across  or  through  the  isthmus  was  foreseen.  The 
main  reason  that  enabled  Panama  to  break  the  bonds 
that  united  her  to  Colombia  was  the  latter's  attitude 
regarding  the  completion  of  an  inter-oceanic  canal. 
The  transaction  of  business  was  much  retarded,  and 
the  revolutions  of  Colombia  kept  the  isthmus  in  a 
state  of  effervescence. 

It  became  clear  that  the  French  Company,  in  spite  of 
constant  extensions  of  time,  would  never  complete  the 
work,  and  in  1903  at  a  huge  mass  meeting  of  the  people 
in  the  Central  Plaza  the  City  Council  declared  the  inde- 
pendence of  the  isthmus,  amidst  the  wild  enthusiasm 
of  the  masses,  but  without  any  bloodshed.  The  United 
States  was  the  first  country  to  recognize  this  independ- 
ence, for  about  two  weeks  after  the  secession  from 


92      THE  FUTURE  OF  SOUTH  AMERICA 

Colombia  a  treaty  was  signed  between  our  own  nation 
and  this  new  republic.  From  this  treaty  I  paraphrase 
the  following: 

1.  The  United  States  guarantee  the  freedom  of  Panama  as 
a  republic  and  constitute  themselves  as  defenders  of  its  terri- 
tory in  case  of  conflict  with  any  other  nation,  having  the  right 
to  interfere  in  internal  affairs  only  when  a  civil  war  or  dis- 
turbances of  the  peace  may  arise  that  would  endanger  the 
work  of  the  Canal  or  any  other  American  interest. 

2.  The  Canal  is  to  become  the  perpetual  property  of  the 
United  States. 

3.  A  strip  of  land  ten  miles  wide,  running  on  both  sides 
of  the  Canal  from  the  Atlantic  to  the  Pacific,  is  leased  for  an 
indefinite  time  to  the  United  States  Government,  for  which  the 
United  States  are  to  pay  the  RepubUc  of  Panama  S250,000 
a  year.  The  cities  of  Panama  and  Colon  are  excluded  from 
this  zone,  remaining  as  part  of  Panama  territory. 

4.  The  United  States  Government  is  to  undertake  and 
complete  within  a  certain  time  the  work  of  sanitation  in  the 
Canal  Zone,  including  also  the  Panamanian  cities  of  Panama 
and  Colon. 

Since  her  separation  from  Colombia,  Panama  has 
improved  rapidly.  Her  government  offices  are  now  filled 
largely  by  her  own  citizens;  schools  have  been  opened 
and  are  constantly  becoming  better;  roads  with  bridges 
over  the  many  streams  have  been  built,  and  it  is  ex- 
pected that  railroads  will  soon  replace  the  old  method 
of  delivering  goods  on  horseback.  The  building  of  rail- 
roads will  naturally,  as  everywhere,  be  a  most  important 
factor  in  the  development  of  Panama's  resources.   • 

Unquestionably,  Panama  is  a  land  of  the  future,  if 
she  will  adopt  a  free-trade  policy.  She  has  the  best 
location  in  the  world  for  developing  a  great  free  market. 
Her  opportunity  is  commercial  rather  than  industrial. 
To  develop  such  a  market,  however,  England's  policy 


PANAMA  93 

must  be  followed.  Panama  is  the  key  to  the  Pacific, 
and  therefore  a  most  cosmopolitan  country,  as  all  the 
races  of  the  world  may  be  found  within  her  territory. 

Her  resources  are  many,  stock  raising  and  farming 
being  the  most  important.  On  account  of  the  rich  soil, 
agriculture  now  offers  most  favorable  advantages  to 
capital.  Bananas  and  sugar-cane  are  wild  products. 
It  is  very  common  to  see  a  bunch  of  bananas  larger  than 
a  six-year-old  cliild  being  sold  for  fifteen  cents.  Her 
forests  are  rich  in  many  valuable  woods. 

Perhaps  it  is  not  generally  known  that  the  idea  of  the 
canal  dates  back  to  the  time  of  Charles  V  of  Spain 
(1528-1534),  who  gave  orders  regarding  the  project. 
Certainly  if  there  is  anything  to  be  proud  of  in  the  way 
of  human  enterprises,  I  believe  this  achievement  is 
that  thing.  Most  of  the  success  of  the  work  is,  without 
doubt,  due  to  two  men:  Colonel  Goethals,  Chief  Engi- 
neer of  the  Panama  Canal  Commission,  and  Colonel 
W.  C.  Gorgas  of  the  Medical  Corps,  United  States 
Armj%  Chief  Sanitary  Officer  in  the  Canal  Zone.  In 
my  o\vn  opinion,  however,  the  building  of  the  canal  is 
due  more  to  the  Medical  Corps  of  the  United  States 
Army  than  to  the  various  engineers  and  statesmen. 

Although  to  the  European  it  may  still  be  for  many 
reasons  more  advantageous  to  travel  by  the  Straits  of 
Magellan,  yet  to  American  trade  the  canal  is  of  the 
greatest  importance.  We  can  compete  with  Europe, 
bringing  her  eastern  products  more  quickly  to  Guaya- 
quil, Callao,and  Valparaiso,  since  New  York  is  seventy- 
five  hundred,  forty-four  hundred,  and  thirty-eight 
hundred  miles  nearer  to  these  ports,  respectively,  than 
is  Liverpool.  Against  such  advantages,  there  are, 
however,  other  important  factors,  viz.,  (1)  The  ex- 


94     THE  FUTURE  OF  SOUTH  AMERICA 

ports  from  these  countries  to  Europe,  whose  value 
has  been  five  times  as  much  as  to  the  United  States, 
give  the  steamers  enough  for  a  return  cruise  to 
Europe;  (2)  the  European  capital,  which  has  a  strong 
footing  in  South  America,  as  evidenced  by  many- 
foreign  banks,  provides  the  necessary  credit;  and  (3) 
the  United  States  exacts  a  tariff  from  steamers  passing 
through  the  canal. 

The  future  is  still  reserving  great  changes  in  the 
world's  commerce.  The  United  States  has  solved  a 
most  important  problem  by  digging  the  canal.  Com- 
merce will  expand  to  the  remotest  regions,  time  and 
freight  charges  being  greatly  reduced.  Cargoes  from 
Europe  will  reach  our  Pacific  coast  much  more  quickly, 
and  shipments  to  Asia  can  go  by  a  "direct  westward 
way,"  as  Columbus  thought  over  four  centuries  ago. 

Meeting  a  friend  on  the  isthmus,  I  asked  why  it  was 
that  I  saw  so  few  Germans  in  Panama.  This  reply 
came  at  once: 

"The  land  laws  are  so  bad,  and  the  police  and  judi- 
ciary so  rotten  that  the  Germans  will  not  come  here. 
Take  it  from  me,  where  you  find  the  most  Germans  in 
South  America,  there  you  will  find  the  most  opportuni- 
ties; where  there  are  no  Germans,  there  are  no  oppor- 
tunities. The  people  of  Panama,  Colombia,  and 
Venezuela  are  very  difficult.  The  only  one  of  these 
countries  down  here  that  has  a  satisfactory  govern- 
ment is  Costa  Rica,  and  the  better  condition  there  is 
due  to  the  fact  that  the  Costa  Rican  government  is 
controlled  by  a  large  United  States  corporation.  Jus- 
tice must  be  bought  in  Panama;  and  in  every  other 
Latin-American  country,  for  that  matter.  The  police 
are  unreliable.    The  courts  favor  their  own  people  and 


PANAMA  95 

are  universally  against  foreigners.  Bribery  exists 
everywhere,  and  every  man's  hand  is  open.  The  people 
who  are  friendly  with  the  government  officials  do  well. 
Those  who  do  not  stand  in  with  the  government  have 
big  taxes." 

Against  the  word  of  this  man,  I  repeat  what  the 
President  of  the  republic  said  to  me  as  I  was  leaving 
the  palace.     It  was  this: 

"Tell  the  people  of  North  America  that  such  stories 
regarding  South  America  are  false.  We  are  of  course 
3'oung,  and  our  people  have  not  the  education  that  your 
people  have.  Hence  we  make  many  more  mistakes; 
but  our  hearts  are  in  the  right  place.  We  want  to  do 
right.  Just  treat  us  as  you  would  your  sister,  and  cease 
exploiting  us,  and  ever\i:hing  will  go  on  well.  Look  at 
the  opportunities  of  Panama,  instead  of  at  the  sins. 
Thiiik  what  possibilities  for  development  you  have  here, 
instead  of  seeking  chances  for  distinction; 

"We  have  millions  of  acres  of  the  finest  sugar-cane 
land  in  the  world,  and  yet  we  are  now  importing  sugar. 
Therefore  there  are  great  opportunities  in  this  line. 
Our  land  is  unexcelled  for  tobacco.  Land  which  is  sell- 
ing for  two  to  tliree  hundred  dollars  an  acre  in  Cuba 
can  be  duplicated  here  for  a  few  dollars. 

"A  great  opportunity  awaits  those  who  will  import 
good  breeding  stock,  and  raise  cattle,  hogs,  and  other 
livestock.  We  have  fine  grazing  lands,  suitable  for 
raising  millions  of  head  of  cattle,  and  yet  we  import 
our  butter  and  cheese.  Our  people  have  the  erroneous 
idea  that  cows  cannot  bear  both  calves  and  milk  for  the 
market.  Your  people  know  better.  A  great  opportu- 
nity exists  in  the  erection  of  dairies  and  the  like.  We 
are  building  a  railroad,  carriage  roads,  and  a  fine  hos- 


96  THE  FUTURE  OF  SOUTH  AMERICA 

pital.  This  railroad  is  to  open  up  the  Chiriqui  district, 
where  some  of  your  countrymen  are  doing  so  finely  to- 
day. Along  the  line  of  this  railroad  are  opportunities 
—  and  we  shall  build  more  railroads  as  soon  as  your 
government  will  let  us.  Finally,  let  me  say  that  we 
have  now  a  fine  district  in  which  your  citizens  can  live 
when  they  come  here.  A  beautiful  suburb  is  being 
developed  here  at  Panama  City  across  the  bay." 

I  believe  that  the  future  of  Panama  depends  upon 
what  tariff  system  is  adopted.  If  she  follows  the  trail 
of  other  Latin-American  countries  and  erects  tariffs 
either  to  secure  revenues  or  "protect"  her  people,  she 
will  continue  to  be  a  struggling  little  republic  for  years 
to  come.  If,  however,  Panama  will  adopt  the  "open- 
door"  policy,  she  can  become  the  market  place  of  the 
world.  No  place  is  better  located  to  take  from  England 
her  clearing-house  trade.  Everything  favors  Panama 
City  becoming  another  London  or  Liverpool.  If, 
therefore,  the  people  will  strive  for  such  a  result,  the 
future  of  Panama  is  very  bright. 

However,  whether  you  are  considering  Panama  or 
Pennsylvania,  don't  throw  up  your  job  and  move  there, 
or  invest  money,  until  you  have  visited  the  place  and 
investigated  for  yourself.  Don't  depend  upon  the  eyes 
or  ears  of  others  when  seeking  opportunities  either  for 
work  or  investment. 


CHAPTER  VII 
Venezuela 

Venezuela  is  in  a  strategic  position,  as  it  is  the  north- 
ernmost country  of  South  America.  It  is  bounded  on 
the  north  by  the  Caribbean  Sea;  on  the  east  by  the 
Atlantic,  British  Guiana,  and  Brazil;  on  the  west  by 
Colombia,  and  on  the  south  by  Brazil.  It  is  interesting 
to  note  that  the  coast  line  looks  just  the  same  to-day 
as  when  Columbus  sailed  along  these  shores  over  four 
hunch-ed  and  twenty-five  years  ago.  In  fact,  my 
Venezuelan  friends  say  that  as  he  reached  the  harbor 
of  La  GuajTa,  Columbus  "gave  thanks  to  God  who 
delivered  him  from  so  many  troubles,  still  showing  him 
new  countries  full  of  peaceful  people  and  great  wealth.'^ 
Whether  or  not  Columbus  put  the  "great  wealth"  in 
italics,  I  do  not  know,  but  in  the  quotations  from  his 
diary,  which  the  Venezuelan  people  use,  the  last  two 
words  always  appeared  in  italics! 

Hence  it  appears  that  from  the  earliest  days  of  dis- 
covery this  land  alx)unded  in  great  natural  wealth,  and 
it  is  remarkable  that  the  riches  should  have  remained 
practically  untouched  during  these  four  centuries. 
The  fact  can  be  understood  only  when  we  remember 
that  these  Spanish  explorers  sought  the  easy  road 
to  wealth.  So  where  time  and  labor  figured  in  an 
enterprise,  it  was  left  for  future  generations  to 
work  out.     Moreover,  the  richness  of  the  soil  really 


98  THE   FUTURE  OF  SOUTH   AMERICA 

proves  a  hindrance  to  development,  for  the  forest 
growths  are  so  thick  that  they  are  almost  impossible 
to  penetrate. 

Many  people  who  have  lived  in  tropical  countries  say 
that  no  country  in  the  tropics  can  ever  become  a  factor 
in  world  development.  They  insist  that  a  warm  climate 
makes  any  extended  industry  and  commercial  growth 
impossible.  The  very  nature  of  the  climate  tends  to 
laziness  and  causes  men  to  seek  a  living  without  work- 
ing. Therefore  they  try  to  get  employment  in  political 
life  rather  than  in  industrial  enterprises,  and  this  is 
the  fundamental  explanation  why  revolutions  have 
been  such  an  industry  of  Venezuela  as  well  as  of  cer- 
tain Central  American  republics  farther  north. 

Personally  I  cannot  bring  myself  to  agree  entirely 
with  these  views.  Venezuela,  a  country  seven  hundred 
miles  long  and  six  hundred  and  fifty  miles  wide,  having 
an  area  of  approximately  four  hundred  and  forty 
thousand  square  miles,  about  twice  the  size  of  France 
and  as  large  as  the  whole  of  New  England,  New  York, 
Pennsylvania,  New  Jersey,  Delaware,  Maryland,  with 
several  more  States  thrown  in,  is  sure  to  become  a 
source  of  wealth  to  some  one.  With  the  broad  and  fer- 
tile plains,  the  tremendous  forest,  and  the  various  other 
advantages,  the  climatic  conditions  must  give  way  to 
advancing  commerce  and  industry. 

The  country  itself  consists  for  the  greater  part  of  low, 
level  plains  called  llanos,  cut  off  from  the  Caribbean 
Sea  by  mountain  ranges.  The  capital,  Caracas,  is 
separated  from  its  seaport  town,  La  Guayra,  by  a 
mountain  range  over  four  thousand  feet  high.  There 
are  a  great  many  small  waterways  and  small  streams  in 
this  country,  all  of  which  are  insignificant  when  com- 


VENEZUELA  99 

pared  with  the  Orinoco  River,  which  is  between  six 
and  seven  hundred  miles  in  length. 

The  llanos  are  flooded  in  the  rainy  season  and  sun- 
scorched  in  the  dry  season,  being  therefore  sparsely 
populated.  Higher  up  in  the  valleys  between  the  moun- 
tain ranges,  the  climate  is  better  and  more  healthful; 
consequently  this  region  is  the  place  of  habitation  for 
most  of  the  population. 

Travel  to  Venezuela  has  increased  greatly  in  recent 
years,  and  every  traveler  returns  home  impressed  with 
the  commercial  possibilities  as  well  as  the  natural  beauty 
of  the  country.  As  a  result,  I  find  that  capital  is  already 
working  its  way  to  Venezuela  and  is  slowly  pushing 
several  small  railroads  from  the  coast  into  the  remote 
sections,  while  roads  are  })eing  built  so  that  the  humble 
native  is  able  to  bring  his  products  to  market  and  buy 
goods  with  the  profits  therefrom. 

The  population  at  present  is  approximately  two  mil- 
lion seven  hundred  and  fifty-five  thousand,  and  in  1875 
it  was  about  two  million.  Immigration  has  fallen  off 
during  the  past  few  years,  and  to-day  only  about  ten 
per  cent,  of  the  population  is  white.  When  we  consider 
that  the  people  are  crowded  together  in  the  mountain 
valleys,  leaving  the  greater  part,  the  plains,  un- 
settled, it  will  be  seen  that  the  population  has  been 
increasing  at  about  a  normal  rate.  The  few  settlers 
on  the  plains  are  of  Indian,  Spanish,  and  negro  extrac- 
tion, but  in  the  valleys  we  come  to  a  higher  grade,  a 
more  intelligent  class. 

The  most  important  cities  are  Caracas,  the  capital; 
its  seaport  town,  La  Guayra;  Valencia,  and  its  seaport 
town,  Puerto  Cabello;  Maracaibo,  situated  on  the  bay 
of  the  same  name,  and  Ciudad  Bolivar. 


100  THE   FUTURE   OF  SOUTH  AMERICA 

A  former  disadvantageous  feature  of  La  Guayra  was 
that  it  was  entirely  open  to  the  sea,  having  no  protec- 
tion whatever,  but  it  is  at  present  being  developed  by  a 
corporation.  On  the  other  hand,  Puerto  Cabello  is 
partially  protected  by  an  arm  projecting  to  the  north 
of  the  harbor.  The  city  of  Maracaibo  is  protected,  as 
it  is  situated  a  few  miles  in  from  the  Caribbean.  There 
are  other  seaports  of  minor  importance,  but,  generally 
speaking,  Venezuela  has  no  good  harbors. 

The  custom  regulations  are  very  troublesome.  There 
are  no  porters,  all  packages  being  carried  to  the  custom- 
house by  soldiers.  These  soldiers  are  prejudiced  against 
carrying  more  than  one  package  at  a  time,  and  you  are 
charged  so  much  a  package.  The  people  at  the  dock 
are  not  so  scrupulously  honest  as  those  away  from  the 
coast,  and  it  is  very  advisable  to  keep  a  watchful  eye 
on  your  luggage. 

The  lower  class  of  people  in  the  seacoast  towns  are  a 
mixture  of  Spanish  and  Indian  blood,  making  them 
somewhat  warlike.  There  is  considerable  crime,  and 
although  the  death  penalty  has  been  abolished,  there 
are  said  to  be  in  use  to-day,  situated  below  the  sea  or 
swamp  levels,  dungeons  in  which  criminals  are  kept 
preparatory  to  trial. 

The  occupations  of  the  people  depend  almost  entirely 
on  agriculture.  In  fact,  the  prosperity  of  Venezuela  at 
present  depends  upon  its  agricultural  development. 
There  is  also  considerable  interest  in  mining,  forest 
produce,  and  pearl  fisheries.  The  mining  operations 
and  pearl  fisheries  are  carried  on  by  European  and 
North  American  interests  which  have  obtained  valu- 
able concessions  from  the  Venezuelan  Government. 

The  first  thought  which  came  into  my  mind  when  rid- 


VENEZUELA  101 

ing  on  the  trains  through  Venezuela  was :  Why  are  not 
more  cattle  raised  on  the  abounding,  fertile  prairies  of 
the  country?  The  land  on  both  sides  of  the  railroad 
from  Puerto  Cabello  to  Valencia  appears  superior  to 
the  finest  cattle-raising  land  in  the  United  States.  How 
this  warm  climate  would  affect  cattle  I  do  not  know; 
but  it  is  not  much  warmer  on  these  plains  than  in  parts 
of  Texas,  and  the  smnmer  weather  on  the  table-lands 
compares  favorably  with  the  summer  of  Kansas  or 
Nebraska.  In  the  entire  republic  there  are  not  more 
than  two  million  cattle,  while  the  plains  cover  about  one 
third  of  the  country,  or  one  hundred  and  twenty  thou- 
sand square  miles.  These  plains  should  support  fifty 
million.  Moreover,  no  attempts  are  made  at  breeding, 
the  cattle  being  small  and  thin.  If  some  good  stock 
were  imported,  it  seems  to  me  that  Venezuela  would 
ofifer  a  splendid  opportunity  in  cattle  raising. 

Considering  its  proximity  to  this  country,  and  the  fact 
that  it  is  practically  on  the  great  trade  lines  which  are 
to  be  established  through  the  Panama  Canal,  its  cattle 
would  command  a  higher  price  than  those  raised  far- 
ther south.  The  nearness  to  the  markets  is  an  advan- 
tage which  these  northern  South  American  republics 
possess,  and  which  in  many  ways  will  some  day  offset 
the  disadvantages  of  the  climate.  Every  year  food 
animals  are  becoming  scarcer  in  the  United  States,  and 
it  will  be  only  a  short  time  before  we  must  turn  to 
South  America.  A  young  man  can  now  go  to  Venezuela 
and  at  moderate  cost  acquire  vast  tracts  of  this  prairie 
land.  Such  a  man,  surrounding  himself  by  proper  asso- 
ciates, might  develop  almost  at  our  very  doors  a  great 
and  profitable  industry. 

Of  course  with  cattle  will  come  general  farming.    The 


102  THE  FUTURE  OF  SOUTH  AMERICA 

principal  agricultural  products  now  are  coffee,  sugar, 
cacao,  vanilla,  spices,  fruits,  and  cotton.  The  principal 
forest  products  are  rubber,  fustic,  divi-divi,  and  tonka 
beans. 

The  following  lists  show  what  is  being  raised  and  ob- 
tained from  Venezuela  at  the  present  time  and  the  vari- 
ous ports  from  which  these  goods  are  being  exported: 

Principal  articles  of  export:  coffee,  cocoa,  balata, 
cattle  hides,  gold,  goat  and  kid  skins,  rubber,  heron 
plumes  (aigrettes),  asphalt,  copper  ore,  beef  cattle, 
divi-divi,  raw  sugar,  tonka  beans,  frozen  beef,  deerskins, 
sea  salt,  balsam  of  copaiba,  pearls,  cocoanuts,  cotton, 
feathers. 

Exports  by  ports:  Maracaibo,  Puerto  Cabello,  Ciudad 
Bolivar,  La  Guayra,  Carupano,  Cristobal  Colon,  Cano 
Colorado,  La  Vela,  Puerto  Sucre,  Pampatar,  Quanta. 

As  the  exports  of  the  country  increase,  so  will  the 
imports  increase  likewise,  for  almost  every  dollar  which 
comes  into  the  country  is  spent  in  buying  manufactured 
cotton  goods,  flour,  machinery,  etc.  In  fact,  the  follow- 
ing list  of  imports  for  a  recent  year  shows  what  is  being 
brought  into  the  country,  and  the  list  following  that 
shows  what  ports  are  most  enterprising  in  a  commercial 
way: 

Articles  of  import:  cotton  textiles,  flour,  medicines 
and  drugs,  rice,  butter,  wines,  machinery,  sewing,  knit- 
ting, and  embroidery  thread,  kerosene  oil,  hams  and 
bacon. 

Imports  by  ports:  La  Guayra,  Maracaibo,  Puerto 
Cabello,  Ciudad  Bolivar,  Carupano,  La  Vela,  Cano 
Colorado,  Puerto  Sucre,  Cristobal  Colon,  Pampatar, 
Quanta,  Imataca. 

The  interpretation  of  these  lists  shows  that  if  a  man 


\^NEZUELA  103 

is  going  to  the  country  for  cattle  raising  or  other  pro- 
ductive purposes,  he  should  go  to  IMaracaibo  or  Puerto 
Cabello  and  work  inland ;  but  if  he  is  going  for  commer- 
cial purposes,  he  should  consider  La  Guayra  first  and 
then  move  on  to  some  of  the  other  to^^^ls  which  have  a 
good  export  trade.  La  Guayra  of  itself  does  not  amount 
to  much,  excepting  as  the  port  to  Caracas,  the  capital, 
which  is  a  few  miles  inland.  I  think  the  above  tables 
are  very  suggestive  of  where  it  would  be  best  to  locate, 
and  secondly,  what  industries  are  now  being  exploited. 

At  the  present  time,  out  of  the  total  exports  of  about 
twenty-five  million  dollars,  three  tenths  go  to  the  United 
States,  three  tenths  to  France,  two  tenths  to  Germany, 
and  the  balance  to  Spain  and  the  United  Kingdom. 
Considering  the  imports,  about  one  quarter  come  from 
the  United  States,  about  one  quarter  from  the  United 
Kingdom,  about  one  quarter  from  Germany  and 
France,  and  the  balance  from  various  other  countries. 

The  coast  low  lands  are  very  well  suited  for  sugar 
cultivation,  and  to  encourage  the  sugar-cane  industry, 
the  Venezuelan  Govermnent  has  refused  to  allow  the 
importation  of  sugar.  As  is  usual  in  every  case  like 
this,  the  sugar  is  of  poor  quality  and  high  in  price. 
Among  forest  products,  rubber  ranks  first.  As  was  the 
case  with  coffee  some  years  ago,  during  the  period  of 
high  prices  there  was  a  great  increase  in  the  planting  of 
rul)l)er  trees.  These  trees  are  now  bearing  or  will  soon 
bear,  and  are  flooding  the  market.  As  coffee  and  rubber 
are  two  of  the  most  important  articles  of  export,  low 
prices  for  these  products  have  a  very  depressing  effect 
on  business  in  general. 

Divi-divi,  another  forest  product,  is  the  pod  of  a 
shrub,  and  contains  a  great  amount  of  tannin,  which 


104  THE  FUTURE  OF  SOUTH  AMERICA 

is  used  in  tanning  leather.  The  tonka  bean  is  used  in 
the  manufacture  of  tobacco  and  the  extraction  of  per- 
fume. It  is  the  kernel  of  the  fruit  of  the  sarrapia  tree 
which  grows  wild  in  the  thick  forests  near  the  boundary- 
line  of  Guiana.  Inasmuch  as  the  bean  is  admitted  to 
the  United  States  free  of  duty,  I  believe  that  it  might 
be  profitable  for  men  to  learn  how  to  develop  this  tree. 

At  the  present  time,  the  transportation  facilities  con- 
sist chiefly  of  steamers  plying  on  the  rivers.  Venezuela 
is  rich  in  rivers,  and  these  are  navigable  for  a  goodly  dis- 
tance, besides  possessing  some  valuable  water  powers. 
Railroads  are  a  comparatively  new  feature.  There 
are  only  twelve  railroads  in  all,  the  shortest  being  five 
miles  in  length  and  the  longest  one  hundred  and  eleven 
miles,  which  has  the  title  of  the  "Great  Railway  of 
Venezuela."  The  railroad  from  La  Guayra  to  Caracas 
is  one  of  the  most  wonderful  in  the  world.  It  is  only 
twenty-two  miles  in  length,  but  it  zigzags  along  the 
mountain  side,  climbing  to  an  altitude  of  thirty-two 
hundred  feet  and  then  dropping  more  than  a  thou- 
sand feet  into  the  capital  city.  The  total  mileage  of 
the  railroads  is  only  five  hundred  and  fifty  miles,  while 
less  than  seven  hundred  thousand  passengers  are  car- 
ried in  a  year.  There  are  no  electric  lines  except  in 
the  city  of  Caracas. 

The  merchants  of  La  Guajn-a  and  Caracas  have  made 
a  scientific  study  of  the  idea  of  improving  the  wagon 
road  between  the  two  cities.  They  have  in  mind  the 
establishment  of  good  roads  for  automobiles,  hoping 
that  eventually  the  method  of  travel  between  the  two 
cities  will  be  solely  by  motor  vehicles.  A  few  years  ago 
decrees  were  issued  for  constructing  several  new  wagon 
roads  in  the  La  Guayra  district.     These  roads  will 


VENEZUELA  105 

penetrate  to  the  cattle-raising  center,  to  the  coffee  and 
cocoa  district,  and  to  the  sugar-raising  district.  Other 
roads  have  also  been  started  running  directly  into  the 
gold-mining  district.  This  is  a  great  step  forward,  be- 
cause with  good  roads  better  machinery  can  be  trans- 
ported to  the  mines,  allowing  more  economical  methods 
of  extracting  ore.  It  is  also  proposed  to  extend  the  tele- 
graph lines,  which  are  under  federal  control,  to  the 
more  important  centers  connected  by  these  new  roads. 

The  construction  of  these  new  roads  should  be  oppor- 
tune for  our  manufacturers  of  automobiles.  In  several 
of  the  consular  districts,  every  automobile  is  now 
marked  "Made  in  U.  S.  A."  Heavy  cars  and  trucks 
ought  to  find  a  good  market.  There  are  also  develop- 
ments in  electrical  circles  and  for  all-day  currents.  At 
present  they  use  electricity  for  lighting  purposes  only 
at  night,  but  I  feel  that  now  is  the  psychological  time 
for  manufacturers  of  electrical  supplies  to  begin  selling 
campaigns  in  Venezuela. 

Concerning  this  matter  of  automobiles,  our  consul  at 
Ciudad  Bolivar  said: 

"There  are  numerous  openings  for  the  sale  of  auto- 
mobiles here,  and  United  States  manufacturers  would 
do  well  to  investigate  the  trade  possibilities.  Our  cars 
are  well  known,  and  in  fact  every  automobile  in  the 
place  is  of  United  States  manufacture. 

"  Owing  to  the  hilly  situation  of  the  to^\^l,  horse-drawn 
vehicles  are  positively  dangerous,  and  it  is  a  foregone 
conclusion  that  automobiles  will  eventually  replace 
them  entirely.  The  streets  are  undergoing  continual 
alteration  and  improvement,  with  a  view  to  adapting 
them  to  automobile  traffic. 

"In  spite  of  the  opportunities  thus  arising,  most 


106  THE   FUTURE   OF  SOUTH  AMERICA 

North  American  manufacturers  are  unrepresented  here. 
It  is  impossible  to  obtain  information  about  most  makes 
of  car.  There  are  few  garages  or  repair  shops;  nor  are 
supplies  of  any  kind  to  be  had  reasonably." 

There  has  been  a  great  increase  in  manufactures  in 
Venezuela  during  the  past  decade.  There  are  cotton 
and  jute  manufactures  located  near  the  seaport  towns; 
also  paper  factories.  The  industrial  development  in 
every  line  has  made  an  advance. 

The  foreign  trade  of  Venezuela  has  been  carried  on 
by  practically  the  same  lines  and  the  same  steamers  for 
years.  The  future  service  will  be  an  improvement  in 
both  size  and  frequency  of  the  ships  now  visiting  this 
country,  and  the  service  from  the  United  States  ought 
to  be  greatly  improved. 

The  financial  condition  of  Venezuela  is  said  to  be 
quite  sound.  A  short  time  ago,  the  total  public  debt, 
both  internal  and  external,  had  been  reduced  to  less 
than  thirty-five  million  dollars.  Interest  payments  and 
installments  of  principal  have  been  met  punctually  on 
most  loans. 

One  great  drawback  in  Venezuela  has  been  the  fail- 
ure to  protect  foreign  capital,  and  the  country  has  been 
in  constant  trouble  internally  and  externally.  It  has 
had  difficulties  with  Holland,  England,  Germany,  and 
Italy,  which  the  United  States,  although  also  treated 
badly,  adjusted  by  arbitration,  and  succeeded  in  get- 
ting payment  for  some  of  the  foreign  investors.  In 
1908,  however,  as  a  result  of  Venezuela's  repudiation 
of  a  Dutch  loan,  Holland  blockaded  the  country  and 
destroyed  the  navy.  However,  with  the  removal  of 
Castro,  things  improved  somewhat,  but  there  have 
been  constant  internal  troubles  since  that  time. 


VENEZUELA  107 

When  people  began  to  talk  with  me  in  Venezuela 
about  concessions  and  the  laws  of  privilege  I  was 
rather  at  sea  as  to  what  they  meant.  Hence  for  the 
benefit  of  readers  I  herewith  give  the  particulars  con- 
cerning them. 

The  Venezuelan  law  of  privilege  for  unexploited  in- 
dustries, adopted  IMay  31,  1913,  and  approved  June  13, 
provides  that  such  concessions  are  open  to  public  bid- 
ding under  conditions  outlined  in  the  measure.  Fol- 
lowing is  a  translation  of  the  main  provision  of  the  law: 

Article  1.  The  Federal  Executive,  in  conformity  with 
Article  23,  section  8,  of  the  national  Constitution,  may  grant 
temporarilj^  exclusive  pri\-ilcges  to  those  who  establish  an 
unexploited  industrj^  in  the  country. 

Article  2.  The  Federal  Executive  may  concede  such  privi- 
lege for  periods  of  five  to  fifteen  years,  according  to  the  nature 
of  the  industry  and  the  importance  of  the  enterprise. 

Article  3.  For  the  grant  of  such  pri\ilege  the  procedure 
shall  be  as  follows: 

1.  The  petitioner  shall  address  to  the  Ministerio  de  Fo- 
mento  a  brief  which  shall  set  forth  the  description  of  the  in- 
dustry which  it  is  proposed  to  exploit,  the  conditions  of  the 
exploitation,  the  capital  appropriated  therefor,  the  advantages 
which  \\i\i  accrue  to  the  communitj%  and  the  place  or  places 
in  which  the  enter}:)rise  is  to  be  estabhshed. 

2.  Whenever  the  Federal  Executive  shall  deem  useful  the 
establishment  of  an  unex-ploited  industry,  a  privilege  for  which 
shall  not  have  been  solicited  by  any  indi^^dual,  it  shall  offer 
the  privilege  therefor  for  sale  by  auction  in  accordance  with 
regulations  wliich  it  shall  prescribe  in  conformity  with  this 
act. 

3.  The  Ministerio  de  Fomento  shall  cause  to  be  published 
in  the  Official  Gazette  three  times  consecutively  at  intervals  of 
ten  days  the  petition  for  the  privilege  in  order  that  any  per- 
son who  can  furnish  evidence  of  the  existence  of  the  same  in- 
dustry in  the  country  may  interpose  opposition  thereto. 

4.  Such  opposition  shall  be  substantiated  and  decided  on 


108  THE  FUTURE  OF  SOUTH  AMERICA 

in  a  judicial  proceeding  ^^^th  the  petitioner  and  in  accordance 
with  estabhshed  procedure. 

5.  Should  no  opposition  be  interposed  or  should  such  be 
declared  without  foundation  the  Federal  Executive  will  grant 
the  privilege. 

Article  4.  In  the  concession  for  the  privilege,  the  period 
shall  be  specified  within  which  the  exploitation  shall  be  be- 
gun, which  period  shall  in  no  case  exceed  two  years. 

Article  5.  The  industry  shall  be  considered  in  exploitation 
when  the  enterprise  shows  that  it  has  invested  therein  at  least 
one  fourth  part  of  the  prescribed  capital. 

Article  6.  If  the  petitioner  should  request,  in  addition  to 
the  privilege,  exemption  from  national  direct  taxes  and  his 
petition  be  approved,  the  concession  shall  require  the  ap- 
proval of  Congress.  Special  proviso:  The  Federal  Execu- 
tive shall  not  be  required  to  obtain  exemption  from  municipal 
taxes,  which  matter  must  be  taken  up  by  the  petitioner  di- 
rectly with  the  municipaUty  in  whose  territory  he  intends  to 
locate  the  industry  for  which  the  privilege  is  sought. 

Article  7.  As  a  guaranty  that  the  exploitation  will  be  com- 
menced within  the  period  fixed  under  Article  4,  the  petitioner 
shall  deposit  in  the  national  Treasury  of  Venezuela  a  sum 
equal  to  five  per  cent,  of  the  capital  specified  as  necessary  for 
the  enterprise.  The  deposit  shall  be  returned  to  the  enter- 
prise when  it  shows  that  it  has  commenced  the  exploitation. 
Otherwise  it  shall  revert  for  the  benefit  of  the  national 
Government. 

Article  8.  Cessation  of  the  exploitation  for  the  period  of 
six  months  shall  justify  the  termination  of  the  privilege,  ex- 
cept in  the  case  of  unforeseen  event  or  superior  force  duly 
estabhshed. 

Article  9.  The  Federal  Executive  is  authorized  to  provide 
for  enforcement  of  this  act  in  accordance  with  section  9  of 
Article  80  of  the  national  Constitution. 

There  may  be  obtained  by  application  to  the  Bureau 
of  Foreign  and  Domestic  Commerce  a  list  of  the  peti- 
tions that  have  been  submitted  to  the  Ministerio  de 
Fomento,  in  accordance  with  the  foregoing  law,  together 


I 


VENEZUELA  109 

with  the  dates  of  the  Official  Gazette  in  which  they  have 
been  published. 

It  may  be  stated  that  from  the  fact  that  some  of  the 
petitioners  are  not  generally  knowTi  to  have  the  capital 
stated  or  to  be  experienced  in  the  industries  mentioned, 
it  seems  probable  that  some  of  the  requests  for  exclu- 
sive concessions  are  speculative  in  their  nature,  and 
the  concessions  are  sought  with  a  view  to  sale.  On  the 
other  hand,  some  of  the  concessions  are  asked  for  by 
persons  who  have  bona  fide  intentions  to  put  into  opera- 
tion the  industries  for  which  they  ask  special  privileges. 

There  are  and  have  been  many  commercial  agents 
in  Venezuela  from  many  foreign  comitries.  Although 
the  United  States  leads  in  the  foreign  trade,  she  has  by 
no  means  a  monopoly.  German,  Canadian,  Japanese, 
and  representatives  of  other  countries  are  eagerly  look- 
ing for  openings.  While  other  countries  are  making 
special  systematic  efforts  to  increase  their  share  of 
Venezuela's  busmess,  it  certainly  behooves  our  United 
States  exporters  to  do  the  same. 

Apart  from  the  opportunities  in  cattle  raising,  there 
are  many  opportunities  for  selling  goods.  Our  consul 
at  La  GuajTa  said : 

"I  regret  that  there  is  not  in  the  entire  country  a 
distinctive  machinery  house,  one  which  can  install  a 
plant  and  nurse  it  along  into  successful  operation. 
Were  such  a  house  in  existence  in  Caracas,  with  a  com- 
petent and  practical  man  in  charge,  the  sale  of  ma- 
chinery of  various  kinds  could  undoubtedly  be  increased. 

"The  man  in  charge  of  machinery  here  should  be 
practical,  able,  and  fit  to  oversee  the  installation  of  the 
plants  he  sells,  and  to  correct  errors  of  operation.  He 
should  also  be  able  to  help  the  proposed  user  of  ma- 


no    THE  FUTURE  OF  SOUTH  AMERICA 

chinery  to  get  machines  as  he  desires  to  complete  his 
plant.  He  could  keep  in  touch  with  the  industrial  de- 
velopment, and  instantly  follow  up  anything  that 
promised  business  for  the  firm  he  represented. 

"  Were  the  proposed  buyers  confident  that  they  would 
find  some  one  in  the  country  who  had  a  real  interest  in 
seeing  that  the  machinery  they  bought  rendered  good 
service,  and  also  could  help  them  to  that  end,  they 
would  be  more  free  to  buy." 

In  connection  with  general  merchandising,  the  United 
States  Minister  at  Caracas  said : 

"It  is  in  the  nature  of  an  event  when  a  manufactur- 
ing concern  or  a  jobbing  house  in  the  United  States 
sends  a  traveling  salesman  to  this  city;  but  there  ap- 
pears to  be  little  real  reason  why  Caracas  wholesale  or 
retail  houses  should  not  be  familiar  with  our  products. 
Except  for  automobiles,  bicycles,  typewriters,  cash  reg- 
isters, pianos,  sewing  machines,  and  patent  medicines, 
nearly  all  of  which  are  handled  by  accredited  agents, 
most  other  United  States  products  are  unknown." 

When  prices  are  low  for  Venezuela's  principal  ex- 
ports, coffee  and  rubber,  general  business  is  not  good. 
But  to  my  mind  the  time  to  start  a  business  is  when 
things  are  at  a  low  ebb,  and  when  the  new  business  can 
increase  as  the  prosperity  of  the  country  increases. 
There  may  not  now  be  much  opportunity  in  raising 
coffee  or  producing  rubber  in  Venezuela,  but  money  is 
being  made  in  raising  sugar-cane.  For  North  American 
exporters  there  are  opportunities  in  the  following  lines : 
bags  and  bagging,  bottles  (in  spite  of  the  fact  that  they 
have  a  small  glass  industry  in  one  of  the  cities),  cheese, 
cement,  cotton  manufactures,  iron  and  steel  products, 
malt,  oils,  nails,  hats,  butter,  canned  meats,  electrical 


Copyright  by  I'nderwood  d-  Vnderwood 


HALLING   CAULOADS  OF  CANE  INTO  THK   SUGAK  MILL, 
CAFtACAS,  VENEZUELA 


VENEZUELA  111 

apparatus,  paper,  sardines,  woolen  goods,  and  a  great 
many  others. 

Outside  of  the  tremendous  asphalt  industrj',  which  is 
at  present  controlled  by  the  big  American  and  British 
interests,  and  in  which  there  is  no  opportunity  for  the 
small  man,  not  much  is  being  done  at  present  in  the 
field  of  minerals.  There  are  oil  prospects,  but  no  de- 
velopment is  taking  place.  In  fact,  it  is  said  that  the 
known  oil  prospects  have  already  been  seized  by  certain 
North  American  interests.  In  the  western  part  of 
Venezuela  there  is  a  large  deposit  of  remarka])l3^  good 
coal.  This  region  is  north  of  Maracaibo;  the  distance 
from  deep  water  is  considerable,  but  there  is  sure  to  be 
a  large  development  here  as  soon  as  transportation 
facilities  permit. 

Iron  mines  are  being  worked  in  the  Imataca  district 
on  the  Orinoco  River.  A  Canadian  compan}^  is  now 
operating  and  preparing  for  a  large  shipment  each 
year.  Options  on  other  mines  have  been  taken  by 
some  Americans,  but  little  active  operation  exists. 
Certain  rich  copper  deposits  have  been  discovered,  and 
one  company  at  Aroa,  in  Venezuela,  declared  dividends 
of  thirty  per  cent.  Copper  ore  crops  out  at  various 
other  places,  but  little  development  has  taken  place. 

Gold  mines  are  being  worked  in  the  Yuruary  dis- 
trict, and  the  gold  output  is  constantly  increasing. 
The  Venezuelans  claim  that  the  difficulty  is  not  in 
finding  coal,  iron,  copper,  and  gold,  but  in  transporting 
the  machinery  to  work  the  mines  and  in  getting  the 
ore  out.  The  man  who  goes  to  Venezuela  to  sell  ma- 
chinery will  not  only  make  a  profit  on  his  sales,  but 
with  j)rofK'r  financial  connections  at  home  would  have 
wonderful  opportunities  of  purchasing  side  interests  in 


112  THE  FUTURE  OF  SOUTH  AMERICA 

certain  mining  and  manufacturing  enterprises  which 
look  good. 

If  I  were  going  to  Venezuela  in  the  machinery  busi- 
ness, I  would  first  try  to  sell  everything  possible  for 
cash  and  as  much  more  as  I  could  on  approved  credits. 
In  addition  to  this,  I  would  carefully  study  all  new 
projects  in  which  my  machinery  was  to  be  used.  For 
instance,  if  selling  machinery  to  a  mining  company,  I 
would  study  the  opportunities  for  profit  which  that 
mining  company  has.  If  selling  machinery  for  water- 
power  development,  I  would  take  a  trip  up  the  river 
and  see  the  opportunities  which  this  presented.  If 
selling  machinery  for  the  installation  of  a  factory,  I 
would  study  the  possibilities  of  profit  in  connection 
with  this  factory;  and  certainly  this  is  the  place  to 
start  a  cotton  mill.  Once  in  a  while  I  would  be  sure  to 
find  an  extremely  profitable  proposition  where  for  a 
small  sum  of  money  I  could  acquire  a  large  interest  in 
the  enterprise. 

For  a  young  man  to  go  to  Venezuela  with  money  and 
arbitrarily  to  hunt  up  these  opportunities,  would  be 
dangerous.  Such  a  man  would  be  in  danger  of  being 
taken  in.  But  a  man  located  there  in  the  machinery 
business  would  have  a  wonderful  opportunity  both  of 
locating  enterprises  at  the  psychological  moment,  and 
of  knowing  which  were  likely  to  be  good  and  which  bad. 

A  study  of  statistics  leads  me  to  believe  that  Vene- 
zuela has  a  future,  and  that  it  will  arrive  at  this  future 
before  Colombia  arrives  at  hers.  Both  Colombia  and 
Venezuela  need  good  immigration,  which  in  turn  must 
create  stable  governments  and  secure  to  all  the  profits 
of  their  honest  labors. 


CHAPTER  Vm 

Colombia 

Colombia  will  some  day  offer  a  most  inviting  field 
for  the  manufacturers  of  the  United  States,  and  it 
should  also  become  a  favorite  resort  for  the  tourist  when 
its  natural  attractiveness  becomes  better  known. 
To-day  the  United  States  imports  about  twenty  mil- 
lion dollars'  worth  of  goods  each  year  from  Colombia 
and  exports  less  than  half  as  much.  This  balance  of 
trade  should  be  changed,  but  it  must  also  be  remem- 
bered that  the  people  of  that  country  are  none  too  well 
disposed  toward  us  on  account  of  the  Panama  affair, 
in  which  Colombia  lost  the  extensive  territory  now 
belonging  to  that  republic,  although  the  independence 
of  Panama  has  not  yet  been  officially  recognized  by 
Colombia.  The  people  of  Colombia  are  perhaps  the 
most  strongly  Spanish  in  language  and  tradition  of 
any  of  the  South  American  countries,  and  we  have  been 
greatly  handicapped  in  trading  with  them  by  our  fail- 
ure to  send  the  proper  kind  of  representatives  down 
there.  Perhaps  the  most  perfect  Castilian  is  spoken 
in  Colombia  of  any  of  the  Latin-American  countries, 
and  this  leads  me  to  emphasize  again  the  importance 
of  this  language  in  dealing  ^\^th  Latin  America.  With 
the  exception  of  Martinique,  where  French  is  spoken, 
and  of  Brazil,  which  is  Portuguese,  the  whole  of  Latin 
America  is  Spanish.     Thus  to  develop  trade  and  fra- 


114  THE   FUTURE   OF   SOUTH   AMERICA 

ternal  relations  with  Central  and  South  American  coun- 
tries we  must  teach  our  children  Spanish.  On  a  visit 
to  Cuba  I  was  introduced  as  from  Boston,  and  one  of 
the  Cuban  merchants  at  once  spoke  up:  "Boston  — 
that's  where  they  teach  Spanish  in  the  high  schools." 
This  fact  had  made  more  impression  than  anything 
else  Boston  had  done.  Hence,  in  developing  foreign 
trade  with  Colombia  or  elsewhere,  we  must  bear  this 
problem  of  language  in  mind. 

Colombia  is  very  accessible  to  the  United  States,  as 
it  has  about  a  thousand  miles  of  seacoast  on  the  Pacific 
and  almost  as  much  on  the  Caribbean  Sea.  The  area 
of  the  country  is  about  five  hundred  thousand  square 
miles,  or  about  the  sQe  of  Alaska,  and  the  population 
is  over  five  million,  or  equal  to  that  of  Greater  New 
York.  Like  many  other  parts  of  South  America, 
Colombia  has  a  history  reaching  back  to  the  early 
Spanish  rule.  The  coast  of  Colombia  was  part  of  the 
famous  "Spanish  Main."  Columbus  sailed  along  its 
coasts  on  his  fourth  and  last  voyage,  and  it  is  the  only 
country  which  bears  his  name.  Later  the  Spaniards 
conquered  the  land  and  subdued  the  Indians,  a  highly 
civilized  people,  similar  to  the  Incas  of  Peru.  The 
capital  was  established  at  Bogota  in  1536.  Under  the 
leadership  of  Simon  Bolivar,  freedom  from  Spain  was 
secured  in  1819,  and  in  1821  he  was  elected  the  first 
president  of  "Greater  Colombia."  Later  the  title  was 
changed  to  the  Repubhc  of  New  Granada.  This  title 
was  subsequently  altered  to  that  of  the  Grenadine 
Confederation,  then  to  the  United  States  of  Colombia, 
and  lastly  to  the  Republic  of  Colombia. 

Colombia  is  a  country  of  mountain  chains  and.  val- 
leys.  Extending  from  north  to  south  are  three  mountain 


COLOMBIA  115 

ranges.  These  ranges  are  far  apart,  and  there  are  ex- 
tensive valleys  and  table-lands  lying  between.  In  the 
southeast  there  is  an  extension  of  the  llanos  of  South 
America,  and  here  is  one  of  the  great  cattle-raising  dis- 
tricts. In  the  valleys  of  the  numerous  rivers  are  some 
of  the  densest  forests  in  the  world.  With  its  high  moun- 
tains and  table-lands  Colombia  has  almost  every  vari- 
ety of  climate,  soil,  and  scenery  possible. 

The  resources  of  the  country  arc  about  equally  divided 
between  agricultural  and  forest  products  and  minerals. 
Although  the  ex-ports  of  coffee  are  large,  and  the  coun- 
try produces  more  emeralds  than  any  other,  yet  the 
possibilities  have  not  been  realized,  so  that  I  believe 
the  latent  wealth  and  the  favorable  conditions  for  devel- 
opment make  Colombia  a  country  worthy  of  serious 
attention.  The  agricultural  products  include  rubber, 
coffee,  cacao,  bananas  and  other  fruits,  and  vegetable 
ivory.  The  entire  country  is  suitable  for  stock  raising, 
but  cattle  are  now  raised  mainly  for  domestic  consump- 
tion. Hides  are  exported,  but  there  are  great  oppor- 
tunities for  the  establishment  of  refrigerating  plants. 

The  timber  resources  have  not  been  exploited,  yet 
considerable  mahogany  appears  on  the  list  of  exports. 
Dyewoods  and  plants  with  medicinal  properties  offer  a 
wide  field  of  development,  and  there  are  many  fine 
hardwoods  suited  for  furniture  manufacture. 

!Mining  offers  tremendous  possibilities.  Gold  has 
been  mined  for  centuries  in  both  the  quartz  of  the 
mountains  and  the  sands  of  the  rivers.  Silver  is  also 
produced,  and  the  platinum  beds  rival  those  of  Rus- 
sia. There  is  some  oil  which  rcsem])Ies  the  product  of 
our  Texas  fields.  All,  or  nearly  all,  the  emeralds  mined 
to-day  come  from  Colombia.     All  of  these  mines  are 


116  THE  FUTURE  OF  SOUTH  AMERICA 

owned  by  the  government  and  leased  to  private  cor- 
porations. A  curious  fact  in  the  history  of  some  of 
these  important  mines  is  that  they  were  closed  and  lost 
to  the  world  for  over  a  hundred  years  and  only  re- 
discovered in  the  jungle  a  short  time  ago. 

The  chief  need  of  the  country,  however,  and  the  rea- 
son why  its  vast  resources  must  be  left  for  another 
generation  to  develop,  is  the  lack  of  suitable  means 
of  communication.  There  are  few  railroads,  and  the 
river  systems  are  the  chief  channels  of  commerce.  The 
greatest  of  these  is  the  Magdalena,  which  rises  in  the 
Andes  under  the  equator,  and  has  a  length  of  eleven 
hundred  miles.  This  river  resembles  the  Mississippi, 
for  the  waters  are  muddy,  and  it  has  a  large  delta  at 
its  mouth.  Steamboats  of  the  old  Mississippi  type  are 
used  as  means  of  communication.  Along  the  lower 
stretches  the  scenery  is  tropical,  but  as  the  river  ap- 
proaches the  table-lands,  the  country  becomes  fertile 
and  healthful.  The  inhabitants  of  the  lower  country 
are  almost  all  negroes,  and  this  section,  which  was  rich 
and  well  cultivated  under  slave  rule,  is  now  almost 
deserted.  In  the  upper  reaches  of  the  river,  the  coun- 
try people  are  Indians. 

Bogota,  a  city  of  one  hundred  and  twenty-five  thou- 
sand people,  lies  upon  a  fertile  table-land  at  an  ele- 
vation of  eighty-six  hundred  feet.  It  is  built  on 
terraces,  and  has  the  usual  narrow  streets  of  Spanish- 
American  cities.  The  houses  are  usually  not  more 
than  two  stories  in  height,  owing  to  the  frequency  of 
earthquake  shocks.  There  are  electric  railways,  tele- 
phones, and  telegraphs,  and  the  Spanish  population 
is  noted  for  its  culture.  It  has  been  called  the  Athens  of 
South  America.    Bogota   is  the   central   distributing 


COLOMBIA  117 

point  of  the  country.  So  far,  no  continuous  railway- 
system  exists  in  the  repubhc,  but  there  are  many 
short  narrow-gauge  lines.  A  transcontinental  line  is 
proposed.  The  Colombian  Government  has  authorized 
a  subsidy  of  sixteen  thousand  dollars  a  mile  and  land 
grants  for  railroad  construction,  and  it  is  on  this  that 
the  future  of  the  country  depends. 

Colombia  is  a  land  of  contrasts,  from  the  tropic  coast 
to  the  temperate  plateau  and  even  to  the  snow-clad 
mountains  of  the  Cordillera.  Although  it  has  not  yet 
become  a  tourist  countrj^,  every  attraction  of  natural 
beauty  can  be  found  there.  Near  Bogota  are  the  falls 
of  Tequendama,  higher  than  Niagara,  and  many  in- 
teresting remains  of  the  aboriginal  inhabitants  can  be 
found. 

Transportation  should  give  this  country  a  most 
prosperous  future,  but  until  that  is  accomplished,  there 
is  little  for  the  business  man  of  the  United  States. 

I  take  this  opportunity  to  say  a  word  regarding  what 
Colombia  and  other  South  American  countries  are 
doing  along  social  and  welfare  lines.  In  many  ways 
these  countries  are  much  more  advanced  than  is  our 
own.  All  the  leading  universities  of  Latin  America  are 
government  owTied,  instead  of  being  privately  endowed 
and  controlled,  as  in  this  country.  The  hospitals  and 
other  leading  charities  are  likewise  state  affairs,  for 
which  all  are  justly  taxed.  Without  doubt  we  are 
coming  to  this  in  the  United  States,  but  we  are  still  a 
long  distance  in  the  rear. 


CHAPTER  IX 
Ecuador 

Ecuador  has  long  been  known  as  one  of  the  pestilen- 
tial places  of  the  continent,  but  it  has  started  to  clean 
up,  and  will  soon  be  a  good  place  in  which  to  live.  At 
any  rate,  it  offers  many  opportunities  to  outsiders,  es- 
pecially to  our  manufacturers,  if  they  will  only  attack 
the  problem  properly. 

Before  the  Spaniards  came  to  the  western  coast  of 
South  America,  Ecuador  was  inhabited  by  the  Incas 
with  their  great  civilization.  But  when  Pizarro  took 
the  nation  of  the  Caras,  a  people  similar  to  the  Incas, 
and  executed  its  king,  he  sent  one  of  his  lieutenants  to 
capture  this  kingdom  of  Quito,  which  was  accom- 
plished with  little  difficulty.  Then,  according  to  their 
usual  custom,  the  Spaniards  proceeded  to  take  pos- 
session of  estates  of  the  inhabitants,  and  apportioned 
the  land  out  among  themselves.  The  province  remained 
under  the  same  rule  as  Peru  for  many  years.  Later 
it  was  tossed  back  and  forth  between  New  Granada  — 
now  Colombia  —  and  Peru,  but  early  in  the  nineteenth 
century  it  began  to  move  toward  independence.  These 
efforts  met  with  varying  success,  and  finally,  in  1830, 
the  constitution  of  the  Republic  of  Ecuador  was  pro- 
claimed, and  the  republic  has  since  continued  with  as 
little  friction  as  could  be  expected  in  a  South  American 
country. 


ECUADOR  119 

This  constitution  is  quite  liberal,  with  the  same  rights 
granted  to  foreigners  as  to  citizens,  and  is  progressive 
in  allowing  to  women  the  same  rights  as  to  men,  and  the 
free  administration  of  their  personal  property,  even 
when  married. 

Foreigners  may  acquire  property  and  may  establish 
banks  under  the  same  conditions  as  the  natives,  and 
as  funds  set  aside  for  the  public  debt  "cannot  be  di- 
verted" for  other  purposes,  this  tends  to  serve  as  a 
guarantee  of  public  credit. 

In  addition  to  the  usual  departments  of  the  republic, 
there  is  the  department  of  public  instruction,  which  has 
control  of  all  public  and  private  schools,  together  with 
other  educational  institutions.  Since  the  school  of  fine 
arts,  the  conservatory  of  music,  and  the  national  library 
and  astronomical  observatory  are  mentioned  among 
these,  you  might  conclude  that  Ecuador  is  highly  civil- 
ized, until  you  read  in  its  president's  message  that 
they  were  founded  within  ten  years.  The  postal,  tele- 
graph, and  telephone  systems  are  under  the  supervision 
of  this  department,  as  are  also  matters  relating  to 
agriculture  and  general  industries.  At  Guayaquil,  the 
chief  seaport,  there  are  two  telephone  systems  and 
long-distance  service  to  the  capital,  Quito.  The  post- 
office  service  is  efficient  and  well  administered,  and 
the  postal  money-order  system  has  been  installed 
recently. 

Ecuador  has  an  estimated  area  of  one  hundred  and 
sixteen  thousand  square  miles,  or  one  equal  to  New 
York,  New  Jersey,  Pennsylvania,  Delaware,  and 
Maryland  combined.  Its  population  of  about  a 
million  and  a  half  is  almost  wholly  located  near  the 
coast,  on  the  steep  western  sides  of  the  Andes.    The 


120  THE  FUTURE  OF  SOUTH  AMERICA 

eastern  part  is  a  portion  of  the  great  Amazonian 
plain  and  must  be  well  watered  and  fertile,  but  is 
little  explored. 

Travelers  have  given  Guayaquil  the  unenviable  rep- 
utation of  being  the  "pest  hole  of  the  continent,"  as 
it  has  frequent  and  serious  epidemics  of  malaria  and 
yellow  fever.  It  stands  in  an  unusually  bad  location, 
among  swamps  at  the  mouth  of  a  river.  But  since 
Havana,  Panama,  and  other  such  places  have  been 
made  habitable,  it  seems  not  impossible  that  condi- 
tions may  be  improved  here.  Indeed,  steps  have  al- 
ready been  taken  in  this  direction.  Colonel  Gorgas, 
who  cleaned  up  Havana  and  Panama,  has  investigated 
Guayaquil,  and  as  a  result  of  his  report  the  Chamber 
of  Deputies  authorized  a  loan  of  ten  million  dollars 
gold  for  the  work  in  sanitation,  which  insured  a  new 
sewage  system  and  modern  water  works.  A  plague- 
prevention  campaign  should  also  be  started,  as  the 
health  statistics  usually  show  cases  of  this  disease  in 
Guayaquil. 

The  entire  country  is  waking  up  and  becoming  in- 
terested in  modern  improvements  and  methods.  So  it 
would  seem  that  there  might  be  good  opportunities  in 
Ecuador  for  engineers  and  builders,  and  those  inter- 
ested in  other  enterprises  connected  with  the  improve- 
ment of  the  country.  There  are  about  four  hundred 
miles  of  railroad  in  Ecuador,  and  three  hundred  miles 
of  this  are  included  in  the  one  road  between  Guayaquil 
and  Quito.  This  road  was  completed  in  1908,  and  the 
regular  trains  make  the  distance  in  two  days.  A  shorter 
line  from  the  coast  is  now  under  construction,  open- 
ing up  an  exceedingly  fertile  country,  which  already 
yields  immense  quantities  of  cacao,  although  capable 


ECUADOR  121 

of  further  development.  Several  other  small  roads 
are  also  being  built. 

An  active  river  and  coast  service  is  carried  on  by  the 
many  small  boats,  including  steamers,  sailing  vessels, 
and  canoes.  Most  of  the  rivers  are  navigable  for  a  con- 
siderable distance  inland.  The  Guayas,  at  whose 
mouth  Guayaquil  is  situated,  allows  the  passage  of 
steamers  for  forty  miles,  and  of  smaller  vessels  for 
two  hundred  miles.  The  eastern  part  of  Ecuador 
may  be  reached  from  Brazil  by  the  Amazon  and  its 
tributaries. 

Ecuador  exports  the  usual  tropical  fruits  and  also 
cofifee,  cotton,  tobacco,  and  rubber.  The  last  named 
may  be  gathered  and  brought  to  market  every  month 
in  the  year,  and  all  over  the  world  there  is  an  increas- 
ing demand  for  it.  Sugar-cane  is  raised  in  little  more 
than  sufficient  quantities  for  home  consumption, 
though  some  is  sent  to  other  countries.  The  extensive 
forests  contain  trees  of  many  valuable  varieties,  in- 
cluding, besides  rubber  and  the  various  palms,  the 
cinchona,  from  which  quinine,  ever  necessary  in  this 
climate,  is  obtained;  the  mangrove,  an  agent  in  tan- 
ning; and  the  silk  cotton  tree,  whose  fiber  is  known 
to  the  commercial  world  as  kap)ok.  Cattle  and  sheep 
are  raised,  as  there  are  extensive  grazing  lands,  espe- 
cially on  the  uplands.  Hides  bring  good  prices  and  are 
largely  exported,  as  are  also  goatskins  and  alligator 
skins. 

The  mineral  wealth  of  the  country  is  known  to  be  very 
large,  but  is  little  developed,  owing  to  the  inadequate 
means  of  transportation.  Gold,  mercury,  copper,  iron, 
lead,  silver,  and  platinum  have  been  found,  as  well  as 
large  deposits  of  sulphur.    Petroleum  has  also  been  dis- 


122  THE  FUTURE   OF  SOUTH  AMERICA 

covered  in  paying  quantities,  and  these  deposits  are  to 
be  leased  to  some  company  for  development,  but  any 
United  States  company  is  barred.  There  are  great  coal 
fields  in  the  interior  but  little  developed. 

Ecuador  has  one  shoe  factory,  employing  about  a 
hundred  people,  with  an  output  of  sixty  thousand  pairs 
of  shoes  a  year.  Manufacturing,  however,  is  a  limited 
industry,  and  much  of  the  work  is  done  by  hand  in  a 
primitive  way.  Guayaquil  makes  important  articles  of 
consumption,  even  including  ice.  One  of  the  most  suc- 
cessful manufactures  mentioned  is  that  of  matches. 
A  well-equipped  tannery  is  also  in  operation  at  this 
port,  and  smaller  establishments  produce  bags,  cotton 
fabric,  and  mosaics.  The  intense  heat  at  this  low, 
swampy  place  must  discourage  very  active  endeavors 
in  any  line.  The  higher  lands,  however,  boast  more 
manufacturing,  Quito  having  flour  mills,  foundries, 
sugar  refineries,  and  ice  factories.  Shoes,  wagons, 
saddles,  embroideries,  lace,  and  other  things  are  made 
by  hand.  Quito  is  especially  noted  for  the  large  amount 
of  religious  painting  and  sculpture  done  by  artists 
and  sent  to  other  countries. 

Though  Quito  is  almost  exactly  on  the  equator,  yet 
its  elevation  of  over  nine  thousand  feet  insures  it  a 
pleasant  climate,  and  one  far  more  healthful  than  that 
of  the  low  lands.  There  is  less  rainfall  and  a  shorter 
winter  season  than  at  Guayaquil.  At  Quito  are  situated 
most  of  the  higher  educational  institutions.  The  na- 
tional astronomical  observatory  is  quite  an  imposing 
building.  The  government  expends  about  one  hundred 
and  fifty  thousand  dollars  annually  in  the  maintenance 
of  its  universities  at  Guayaquil,  Quito,  and  Cuenca,  and 
a  law  school  at  Loja.    The  President  recommends  the 


ECUADOR  123 

empIojTnent  of  more  foreign  teachers  in  these  institu- 
tions and  also  the  estabhshment  of  a  school  for  the 
training  of  teachers. 

Ecuador  really  has  four  zones  of  climate,  as  the  alti- 
tude varies  from  sea  level  to  over  twenty  thousand  feet. 
Therefore  there  are  the  Tierras  Calientes  or  hot  low 
lands;  the  Templades,  at  an  altitude  of  from  six  to 
nine  thousand  feet;  the  Frias,  including  the  plateau 
on  which  Quito  is  situated;  and  the  Nevadas,  or  Andes, 
whose  tops  are  always  covered  with  snow. 

Ecuador  possesses  great  wealth  in  her  cacao  groves. 
Although  scholars  claim  that  we  should  use  the  spelling 
"cacao"  instead  of  "cocoa,"  yet  the  extensive  adver- 
tising of  the  newer  form  of  word  will  make  it  hard  to 
alter  the  spelling,  at  least  in  English-speaking  coun- 
tries. So  that  now  there  is  the  trade  distinction,  cacao 
referring  to  the  raw  product,  and  cocoa  to  the  finished 
article.  Cacao  is  entirely  different  from  the  coca,  a 
Peruvian  plant,  whose  leaves  are  chewed  by  the  Indians 
for  their  stimulating  effects,  and  which  contains  co- 
caine; from  the  cola  nut  grown  in  West  Africa,  which 
is  slightly  like  it;  and  from  the  cocoanut,  to  which  it 
is  not  even  distantly  related. 

The  great  popularity  of  chocolate  and  cocoa,  both  as 
beverages  and  for  flavoring,  makes  the  market  for  these 
products  practically  unlimited.  With  the  opening  of 
the  Panama  Canal,  the  great  cacao  estates  in  Ecuador 
are  more  accessible  for  supplying  the  increasing  demand 
of  the  world  for  this  favorite  product.  Cacao  must  be 
raised  in  the  torrid  zone,  below  an  altitude  of  twenty- 
five  hundred  feet,  so  the  actual  labor  could  probably 
not  be  performed  by  the  northerner  who  might 
want  to  invest  in  the  industry;  but  his  capital  would 


124  THE  FUTURE  OF  SOUTH  AMERICA 

without  doubt  bring  him  great  results.  In  an  average 
year  about  eight  times  as  much  cacao  in  value  was  ex- 
ported as  Panama  hats  or  coffee,  which  come  next  in 
quantity  in  the  list  of  exports. 

The  Panama  hat  was  originally  not  made  in  Panama, 
but  received  that  name  because  that  city  was  the  dis- 
tributing port.  It  was  manufactured  in  Manabi, 
Ecuador,  and  its  native  name  was  "jipijapa,"  a  name 
now  used  in  the  markets  for  the  inferior  grades,  not 
real  Panamas.  Under  the  fostering  care  of  the  govern- 
ment, a  school  has  been  established  in  Panama  with 
teachers  brought  from  Ecuador  to  instruct  in  the 
weaving  of  hats,  so  that  the  name  is  no  longer  a  mis- 
nomer. Honduras  also  has  a  school  and  a  flourishing 
industry  in  hats. 

When  weaving  such  hats,  the  straw  must  be  kept 
moist  and  the  weavers  work  in  the  late  twilight  or 
early  dawn,  the  only  times  available  for  making  the 
best  grades.  A  skilled  worker  will  finish  a  hat,  work- 
ing these  few  hours  a  day,  in  five  or  six  months,  and  the 
women  and  children  are  the  most  deft  with  their  fingers 
in  this  industry. 

A  rich  planter  of  Ecuador  is  willing  to  pay  as  high 
as  one  hundred  dollars  for  a  Panama  hat,  and  it  is  of 
the  finest  texture,  such  as  is  seldom  seen  in  northern 
countries.  These  hats  of  the  very  best  quality  are  so 
soft  and  flexible  that  one  may  be  folded  and  carried  in 
the  pocket  without  injury.  One  which  was  sent  to  the 
former  Prince  of  Wales  could  be  folded  into  a  package 
no  larger  than  a  watch. 

Besides  exporting  about  a  million  dollars'  worth  of 
hats,  Ecuador  sends  to  other  countries  in  one  year 
many  thousand  dollars'  worth  of  the  torquilla  straw. 


C'upi/riiJiil  liy  ('ndiruuud  A    I  lult  ruiiiiil 
C'AfAO   (;i{()\VI\(,    ON    IHK  TREE,   LA  (  LEMENTINA,  ECUADOR 


ECUADOR  125 

Some  button  man  might  find  it  advantageous  to  invest 
in  a  forest  of  tagua  palms,  whose  nuts  furnish  the  vege- 
table ivory  of  commerce.  This  tree  grows  wild,  and  the 
natives  gather  the  nuts,  which  fall  from  the  trees,  and  sell 
them  to  the  local  merchant  or  exporter.  It  would  seem 
as  if  this  is  not  a  highly  organized  industry,  though  the 
nuts  are  such  a  good  substitute  for  the  ivory  obtained 
from  the  elephant's  tusks  that  there  is  always  a  de- 
mand for  them.  The  vegetable  ivory  is  used  for  making 
umbrella  handles,  chessmen,  and  other  small  articles,  but 
the  principal  use  for  it  is  in  the  manufacture  of  buttons. 
Ecuador  exports  amiually  about  twenty  thousand  tons 
of  this  product,  sharing  the  trade  with  Colombia. 

The  foreign  commerce  of  Ecuador  is  about  twenty-five 
million  dollars  a  year,  with  little  variation.  The  bulk 
of  the  cacao  goes  to  France,  the  rubber  to  England, 
and  the  vegetable  ivory  has  gone  to  Germany.  The 
leading  imports  are  textiles,  foodstuffs,  and  iron  and 
steel.  The  United  States  takes  more  cacao  beans  than 
any  other  country  except  France,  some  rubber,  and 
more  coffee  than  any  other  country  except  Chile.  The 
principal  imports  from  the  United  States  include  iron- 
ware, barbed  wire,  agricultural  implements,  leather 
goods,  boots  and  shoes,  drugs  and  medicines,  mineral 
oils,  and  foodstuffs  —  mostly  packing-house  products 
and  flour. 

The  future  of  Ecuador  lies  in  agricultural  develop- 
ment and  in  mining  —  especially  agriculture  —  but 
the  people  should  not  pin  their  faith  to  cacao  alone. 
Diversified  products  are  necessary  for  the  well-being  of 
every  country.  Instead  of  planting  more  land  to  cacao, 
it  would  be  Vjetter  for  Ecuador's  future  if  hemp,  rice, 
and  other  things  were  developed  highly. 


126  THE  FUTURE  OF  SOUTH  AMERICA 

The  United  States  can  supply  Ecuador  with  every- 
thing consumed  in  the  country,  and  with  the  possible 
exception  of  cotton  goods,  by  proper  efforts  can  control 
the  market.  Moreover,  owing  to  the  general  prejudice 
against  Ecuador,  there  is  less  competition  here  than 
elsewhere. 

Ecuador  is  not  a  large  country  and  thus  has  not  the 
future  that  many  other  Latin-American  countries  have. 
On  the  other  hand,  during  the  next  few  years  Ecuador 
is  likely  to  show  a  greater  percentage  of  gain  than  many 
of  them. 


CHAPTER  X 

Peru 

Peru  has,  long  been  knowTi  as  the  treasure  chest  of 
South  America  on  account  of  the  immense  amounts  of 
gold  and  silver  which  her  mines  have  given  to  the 
world,  and  has  also  been  of  interest  as  the  seat  of  the 
ancient  empire  of  the  Incas  and  their  civilization. 
When  the  Spanish  fleets  came  to  Mexico,  under  the 
lead  of  Pizarro,  the  militarists  went  south,  while  the 
missionaries,  under  the  lead  of  Father  Junipero  Serra, 
of  the  Franciscan  Order,  went  north.  The  militarists 
reached  Peru,  where  they  wantonly  destroyed  and  plun- 
dered. The  missionaries  reached  California,  where  they 
industriously  taught  and  produced.  I  know  of  no 
better  way  to  see  the  evidence  of  the  comparative  fruits 
of  militarism  and  religion  than  to  visit  both  Peru  and 
California  to-day.  Peru  is  an  undeveloped  and  back- 
ward country;  California,  a  veritable  garden  spot. 
The  former  country  is  said  to  be  the  least  developed 
portion  of  South  America,  while  the  Golden  State  is 
certainly  one  of  the  most  beautiful  sections  of  North 
America. 

It  is  also  interesting  to  note  how  Peru  and  California 
compare  in  other  ways.  They  are  similar  in  shape, 
though  Peru  with  its  seven  hundred  thousand  square 
miles  is  more  than  four  times  as  large  as  California; 
in  fact,  it  is  about  three  times  as  large  as  Texas.    Both 


128  THE   FUTURE  OF   SOUTH   AMERICA 

have  mountain  ranges  running  north  and  south,  with 
chmates  varying  according  to  latitude  and  altitude. 
The  temperature  of  each  is  greatly  influenced  by 
ocean  currents,  and  each  has  a  wet  and  a  dry  season. 
Moreover,  the  evenness  of  temperature  for  which  San 
Diego  is  noted  is  likewise  found  in  Lima  and  other 
Peruvian  cities.  The  population  of  Peru  is  estimated 
at  five  million,  or  about  twice  that  of  California.  On 
the  other  hand,  the  difference  in  railway  mileage, 
water-power  development,  and  irrigation  projects  is 
greatly  in  favor  of  California. 

I  bring  up  these  unpleasant  (for  Peru)  comparisons, 
reminiscent  of  the  crimes  Spain  committed  against  this 
country,  to  emphasize  that  a  new  epoch  is  commenc- 
ing, much  more  important  than  that  which  began  when 
Pizarro  crossed  Panama  in  1524.  That  year,  men 
crossed  in  groups  on  horseback;  now  men  cross  in  large 
groups  on  passenger  ships.  By  the  opening  of  the  Pan- 
ama Canal,  Peru  is  brought  within  four  hundred  miles 
as  near  to  New  York  as  is  Mexico  City  by  rail.  This 
surely  means  a  new  awakening  and  a  change  in  the 
business  life  and  development  of  the  country. 

Most  people  make  the  mistake  of  judging  Peru  by  the 
seacoast.  From  the  time  one  leaves  Panama  until  Val- 
paraiso is  almost  reached,  little  is  visible  but  a  "stern 
and  rock-bound"  coast.  But  unlike  our  New  England 
coast,  this  one  is  both  barren  and  sandy.  Not  a  tree, 
shrub,  or  blade  of  grass  is  visible  from  the  steamer; 
only  mountains  of  white  rock  and  sand.  Such  was  not 
always  the  case,  for  the  old  inhabitants  built  irrigation 
works  which  probably  made  much  of  this  desert  a 
profitable  agricultural  country. 

Sailing  on  these  tropical  waters,  one  expects  to  be 


PERU  129 

warm  at  least,  if  not  unbearably  hot,  but  after  passing 
the  shores  of  Ecuador  and  on  nearing  the  first  port  in 
Peru,  the  temperature  begins  to  change  and  it  becomes 
almost  cool.  From  June  to  September  it  is  so  cloudy 
that  the  shore  is  hardly  visible,  but  from  November  to 
April  it  is  bright  and  clear.  The  coolness  is  due  to  the 
presence  of  the  Antarctic  current,  equal  in  length  and 
volume  to  the  better-known  Gulf  Stream  of  the  Atlan- 
tic. This  current  flows  along  the  coast  from  the  south- 
em  part  of  the  continent  of  South  America  to  a  point 
just  at  the  lx)undary  between  Ecuador  and  Peru.  North 
of  this  point,  all  the  usual  conditions  of  the  torrid  zone 
at  sea  prevail,  but  to  the  south  entirely  different  condi- 
tions are  encountered.  No  rain  falls  on  the  coast  of 
Peru ;  there  are  localities  where  it  has  not  been  known 
to  rain  for  eighty  years.  In  the  extreme  northern  part 
they  have,  once  in  seven  or  eight  years,  a  week's  steady 
downfall;  but  most  of  the  coast  is  a  desert,  excepting 
along  the  banks  of  the  fifty-seven  small  rivers  which 
are  fed  by  the  snow's  of  the  Andes.  This  barren  strip 
extends  for  two  thousand  miles  north  and  south,  and  is 
from  forty  to  sixty  miles  wade. 

As  one  comes  from  the  north,  the  first  Peruvian  port 
of  importance  is  Pa>^a,  situated  in  an  almost  land- 
locked harlx)r,  once  the  rendezvous  of  a  great  whaling 
fleet.  The  towm  is  at  the  base  of  sandy  bluffs,  with  small 
adobe  and  bamboo  houses.  The  streets  are  narrow, 
crooked,  and  unpaved.  Besides  two  or  three  shipping 
offices  and  a  few  stores,  there  is  a  railroad  station  for  a 
short  line  which  extends  up  to  the  towTi  of  Piura,  the 
capital  of  this  department,  as  the  provinces  arc  called. 
The  water  supply  of  Payta  is  brought  down  on  this 
railroad  every  day.     Cotton  is  grown  in  this  vicinity 


130  THE  FUTURE  OF  SOUTH  AMERICA 

along  the  Piura  Valley;  there  are  oil  wells  a  few  miles 
to  the  north  (the  oil  regions  cover  an  area  as  large 
as  Holland,  and  yield  a  better  quality  of  oil  than  is 
found  in  the  United  States),  and  coal  and  salt  are  found 
to  the  south.  This  region  is  noted  for  fine  straw  hats 
and  goat  and  kid  skins,  and  there  are  about  twenty 
tanneries  in  the  country.  There  might  be  a  good  chance 
here  for  the  shoe  or  glove  man  to  invest,  as  these  skins 
are  said  to  be  exceptionally  fine. 

Piura  has  soap  and  candle  factories,  ceramic  works, 
and  a  cotton-seed  oil  mill,  and  is  also  the  trade  center 
of  the  country. 

Six  hundred  miles  south  of  Payta  is  Callao,  the  princi- 
pal port  of  Peru  and  the  distributing  center  for  the  bulk 
of  the  merchandise  imported  into  the  country.  The 
harbor  is  spacious  and  slightly  protected  on  the  south- 
west by  the  picturesque  and  rocky  island  of  San 
Lorenzo.  The  town  is  made  up  mainly  of  warehouses, 
and  as  a  matter  of  fact  it  is  only  the  port  of  Lima,  the 
capital  city  of  Peru,  which  is  ten  miles  inland  and 
which  is  reached  by  both  steam  and  electric  cars.  Al- 
though Callao  is  the  largest  port  in  Peru,  large  steamers 
cannot  reach  the  shore,  and  the  passengers  and  freight 
are  obhged  to  go  ashore  in  small  boats.  In  fact,  I  know 
of  no  port  on  the  west  coast  of  South  America  where  all 
freight  is  not  hoisted  over  the  side  of  the  ship  and 
dropped  into  the  lighters  below.  For  this  reason,  and 
on  account  of  the  fact  that  most  inland  transporta- 
tion is  by  mule  back,  it  is  absolutely  necessary  that 
goods  shipped  to  South  America  should  be  carefully 
packed  in  small  boxes  or  bags.  Textiles,  flour,  shoes, 
and  everything  unbreakable  should  be  bound  up  in 
bags.    Machinery  should  be  boxed;  but  no  box  should 


PERU  131 

be  larger  than  can  be  carried  on  the  side  of  a  donkey. 
I  have  seen  broken  cases  on  the  wharves  from  concerns 
in  the  United  States,  which  were  a  disgrace  to  their 
shippers. 

The  troubles  which  the  Peruvians  have  had  in  trading 
with  the  United  States  are  well  illustrated  by  the  fol- 
lowing remarks  of  one  of  my  Peruvian  acquaintances: 

"Suggest  to  your  friends  who  are  shipping  goods 
down  here  that  they  send  for  some  Peruvian  chap  to 
enter  their  employ.  We  are  absolutely  tired  of  writing 
your  people  to  pack  j'our  goods  in  small,  strong  cases. 
Our  letters  are  followed  for  a  few  weeks,  and  then  things 
are  just  as  bad  as  ever  again.  Do  the  concerns  in  the 
United  States  continually  change  shippers,  or  are  these 
shippers  void  of  memory? 

"We  have  the  same  trouble  regarding  colors.  As 
you  know,  the  Peruvian  women  wear  black,  and  our 
consumption  of  black  goods  is  very  large;  but  this 
does  not  mean  that  we  run  to  other  sober  colors.  Be- 
cause we  order  a  large  quantity  of  black  goods,  is  no 
reason  why  a  jobber  should  refuse  to  supply  reds,  yel- 
lows, and  greens  when  we  specifically  order  them,  and 
yet  they  are  continually  doing  so! 

"About  two  months  ago  I  ordered  several  pieces  of 
black  goods  with  a  supplemental  order  of  greens,  urg- 
ing that  the  shipment  be  rushed.  Imagine  my  disgust 
last  week  to  get  a  letter  asking  if  I  did  not  mean  '  grays ' 
iiLstead  of  'greens.'  Now  any  one  acquainted  with  the 
Peruvians  knows  that  they  wear  little  gray.  Either 
they  are  in  mourning  and  want  black,  or  else  arc  not  in 
mourning  and  want  the  brightest  colors  of  the  rainbow. 
If  each  of  these  concerns  could  have  a  Peruvian  boy  in 
its  export  department,  many  of  these  mistakes  could 


132  THE  FUTURE  OF  SOUTH  AMERICA 

be  avoided.  Speaking  of  colors,  let  me  say  that  a  for- 
tune awaits  some  enterprising  Yankee  who  will  buy  up 
second-hand  automobiles  in  your  country,  repaint  them 
red,  green,  or  yellow,  and  ship  them  down  here." 

I  introduce  this  conversation  because  it  illustrates 
certain  fundamental  difficulties  which  have  prevented 
us  from  getting  the  trade  of  these  South  American 
countries. 

Pizarro  landed  at  Callao  and  founded  the  city  of 
Lima  in  1535,  calling  it  the  City  of  Kings.  Pizarro  con- 
quered the  empire  of  the  highly  civilized  Incas  and 
seized  their  gold  and  silver.  He  gained  possession  by 
accepting  an  invitation  from  the  unsuspecting  emperor, 
and  then,  after  taking  him  prisoner  in  his  own  capital, 
put  him  to  death  after  a  mock  trial.  Six  years  later 
Pizarro  was  assassinated  in  his  palace,  which  still 
serves  as  the  capitol  of  the  country.  The  forty  or 
more  viceroys  who  succeeded  one  another  in  the  gov- 
ernment of  this  vast  country  continued  Pizarro's  policy 
of  destroying  the  civilization  of  the  Incas  and  en- 
slaving the  Indians. 

Early  in  the  nineteenth  century,  a  movement  for  in- 
dependence began,  and  this  was  achieved  in  1824  under 
the  leadership  of  Bolivar  and  Sucre.  Boundary  ques- 
tions have  been  troublesome  ever  since  the  beginning 
of  the  republic,  but  if  they  are  ever  settled,  Peru  may 
have  an  opportunity  to  develop  her  resources  and  take 
her  deserved  place  in  the  world.  Peru  and  Ecuador 
have  continually  disputed  their  boundary.  There 
have  also  been  similar  disputes  with  Chile,  but  these 
are  unlikely  to  produce  hostilities  at  present.  Revo- 
lutions still  prevail  in  Peru.  One  took  place  as  re- 
cently as  February,  1914,  resulting  in  the  downfall  of 


PERU  133 

President  Billinghurst.  Since  1890  it  is  said  that  Peru- 
vian finances  have  been  in  the  hands  of  the  Peruvian 
Corporation  whicli  has  practically  acted  as  a  receiver. 
I,  however,  consider  this  statement  unjust;  but  if  it 
is  true,  certainly  the  task  has  not  proved  particularly 
remunerative  to  either  party. 

As  now  bounded,  Peru  has  a  coast  line  which  would 
extend  from  Boston  to  Key  West,  while  if  placed  in  the 
western  United  States,  it  would  reach  from  San  Fran- 
cisco to  Kansas.  Peru  is  naturally  divided,  as  are  so 
many  South  American  countries,  into  three  distinct 
sections  or  zones:  the  narrow,  barren  coast,  averaging 
about  twenty-five  miles  in  width,  which  contains  the 
most  important  cities;  the  great  plateau  in  the  Andes 
regions ;  and  the  rich  forest  lands  to  the  east,  containing 
the  sources  of  the  Amazon  —  well  watered,  but  sparsely 
inhabited  and  little  developed. 

Lima,  a  city  of  one  hundred  and  seventy  thousand 
people,  stands  in  the  first  zone  on  a  level  plain  about 
five  hundred  feet  above  the  sea,  on  both  banks  of  the 
river  Rimac,  which  is  dry  except  when  swollen  by  the 
melting  snows  of  the  Andes.  Then  a  large  part  of 
the  waters  are  diverted  to  irrigation.  Lima  is  one  of  the 
most  progressive  and  interesting  cities  in  South  Amer- 
ica. It  is  well  situated,  both  for  business  and  health, 
and  is  also  replete  ^-ith  the  romance  of  the  Spanish  con- 
quest and  the  times  of  Pizarro,  whose  remains  lie  in  the 
cathedral.  For  eight  months  in  the  year  there  is  not  a 
cloud  in  the  sky,  while  for  four  months,  June  to  Sep- 
tember, the  sun  is  usually  obscured.  Lima  is  a  type  of 
the  Spanish  city,  with  a  great  central  plaza,  filled  with 
tropical  plants  and  surrounded  b}^  the  cathedral,  impor- 
tant buildings,  and  business  blocks.     Formerly  it  was 


134  THE  FUTURE  OF  SOUTH  AMERICA 

a  walled  city,  with  heavy  stone  walls  along  the  banks 
of  the  river  and  the  other  three  sides,  and  the  ruins  still 
exist. 

The  streets  of  Lima  are  from  twenty  to  thirty  feet 
wide,  and  run  at  right  angles.  Most  of  them  are  paved 
with  cobblestones.  The  houses  are  painted  blue,  yel- 
low, or  pink,  and  for  the  most  part  are  only  one  story 
in  height,  though  the  stores  facing  the  Plaza  are  of  two 
stories,  the  second  projecting  so  as  to  form  an  arcade 
around  two  sides  of  the  square.  Some  of  the  houses  are 
built  of  brick,  but  most  of  them  are  plastered.  One 
traveler  said  that  a  burglar  needs  only  a  wet  sponge  and 
a  knife  to  enter  any  house  in  Lima.  This,  however,  is 
an  exaggeration,  when  one  takes  into  consideration  the 
surprising  thickness  of  the  walls,  for  they  are  from  two 
to  six  feet  through.  Few  windows  open  on  the  street, 
the  rooms  being  lighted  from  the  interior  court,  while  the 
entire  front  of  the  stores  opens  as  a  door.  The  preva- 
lence of  earthquakes  accounts  for  this  style  of  build- 
ing, for  Peru  has  suffered  considerably  from  this  cause. 
Most  of  the  buildings,  therefore,  are  modern  and  ordi- 
nary, but  a  few  which  have  withstood  the  earth- 
quakes have  beautiful  carvings  on  the  balconies.  The 
population  is  a  mixture  of  Spanish,  Peruvian,  Indian, 
Japanese,  and  Chinese  (twenty  thousand),  besides 
English.  Much  of  this  population  is  poor  but  proud, 
and  social  distinctions  are  very  marked. 

The  mean  annual  temperature  in  Lima  is  66°  Fahr- 
enheit. It  may  well  be  considered  a  "mean  tempera- 
ture," said  a  traveling  salesman  to  me,  "for  it  is  never 
cold  enough  to  have  a  fire,  although  from  June  to  Sep- 
tember it  is  usually  cold  enough  to  make  you  wish  for 
one."    It  never  rains,  but  during  these  four  months  it 


PERU  135 

is  continuously  cloudy  and  often  fogp:>\  There  are  no 
chimneys  in  the  small  houses,  cooking  being  done  by 
charcoal  fires  on  a  porch.  Lima  has  electric  lights  and 
a  system  of  water  works.  Education  is  provided  for  in 
elementary  schools,  and  the  University  of  Lima  was 
founded  a  hundred  years  before  the  founding  of  Har- 
vard. As  this  has  always  been  a  strongly  Catholic 
country,  there  are  many  monasteries,  and  the  cathe- 
dral founded  by  Pizarro  is  the  most  striking  building 
in  the  city.  The  religious  question  has  had  a  great  in- 
fluence on  the  country.  Even  when  I  was  last  in  Peru, 
a  Protestant  church  could  not  have  a  regular  meeting- 
house. All  Protestant  meetings  are  held  in  secret,  I 
love  the  Peruvians,  and  I  believe  that  the  Roman 
Catholic  religion  may  be  the  best  possible  for  these 
people,  but  I  do  not  believe  that  Peru  will  enjoy  much 
prosperity  until  it  separates  politics  and  the  church. 
Moreover,  the  same  comment  may  also  apply  to  Chile 
and  certain  other  Latin-American  countries. 

Manufacture  of  many  necessary  articles  is  carried  on 
in  Lima,  but  comparatively  little  is  exported.  There 
are  attractive  botanical  and  zoological  gardens,  and 
the'  city  also  boasts  of  the  largest  bull-fighting  ring  in 
the  world.  Lima  is  the  present  commercial  and  financial 
center  of  the  comitry,  and  there  is  no  doubt  in  my  mind 
that  for  some  time  to  come  it  will  ])e  the  leading  West 
Coast  city  between  Panama  and  Valparaiso.  I  strongly 
advise  manufacturers  to  give  it  more  attention.  Head- 
cjuarters  should  be  located  here,  as  from  Lima  one  can 
reach  the  other  trading  centers  within  two  or  three  days' 
journey.  On  the  other  hand,  Lima  itself  can  never  be 
either  a  railroad  center  or  a  seaport,  so  that  the  ulti- 
mate great  city  of  Peru  may  be  located  elsewhere. 


136  THE  FUTURE  OF  SOUTH  AMERICA 

The  people  of  Lima,  and  of  all  Peru  as  well,  are  not 
progressive  as  we  understand  the  term.  The  railroads 
and  mines  are  in  the  hands  of  men  from  the  United 
States;  Germans  and  English  do  the  shipping;  other 
foreigners  do  the  trading.  The  government  and  the 
people  are  the  weakest  features  of  the  country.  The 
Peruvians  frankly  admit  that  they  have  little  initiative 
and  are  satisfied  to  let  well  enough  alone.  Free  speech 
is  still  questioned.  While  I  was  in  Peru  a  mass 
meeting  was  held  in  Arequipa  protesting  against  the 
very  large  increase  in  taxes.  So  many  people  attended 
the  meeting  that  the  police  tried  to  disperse  them,  and 
within  a  few  minutes  several  men  were  killed. 

I  had  a  letter  of  introduction  to  the  minister  of  for- 
eign affairs,  but  when  I  called,  I  found  that  he  had 
been  shot  in  a  duel  the  week  before. 

Peru  needs  a  heavy  immigration  from  the  cold  and 
sturdy  countries  of  Europe. 

I  made  a  special  trip  to  the  mountains  to  see  the 
native  Indians  living  and  working.  Unlike  the  natives 
of  the  West  Indies,  the  Indians  of  Peru  cannot  live  on 
wild  cocoanuts,  bananas,  and  breadfruit.  Such 
things  do  not  grow  wild  in  central  and  western  Peru. 
They  are  cultivated  on  irrigated  land.  Hence  most 
of  these  Peruvian  Indians  are  peons,  and  work  for 
others  at  about  fifteen  cents  per  day.  These  Indians 
live  in  wretched  huts  made  of  bamboo  covered  with 
adobe,  with  a  hole  in  the  center  of  the  roof  so  that 
the  smoke  may  escape.  Many  of  them  live  in  a  sort 
of  cave  and  in  dugouts  in  the  side  of  cliffs.  In  their 
little  villages  I  saw  mules  actually  treading  out  the 
grain  with  their  hoofs,  as  in  old  Bible  times.  I  saw 
the  caravans  coming  in  from  the  desert  as  they  are 


PERU  137 

seen  in  northern  Africa.  What  made  the  greatest 
impression  on  me  was  this:  In  front  of  each  tiny- 
adobe  hut  is  a  round  corral,  twent}^  feet  in  diameter 
and  bordered  with  a  few  stones  loosely  laid  around  so 
as  to  make  a  rough  wall  about  a  foot  high.  These  are 
to  keep  the  stock  in  at  night.  The  animals  have  so 
little  life  that  they  Mill  not  step  over  these  few 
stones. 

The  chief  beast  of  burden  in  the  mountains  is  the 
llama,  an  animal  ^^^th  a  long  neck  and  a  small  head, 
which  looks  like  a  big  sheep.  Although  these  animals 
absolutely  refuse  to  carry  more  than  a  small  load,  they 
need  little  attention.  They  feed  and  take  care  of 
themselves. 

Riding  across  the  arid  desert,  I  met  several  caravans 
bringing  alpaca  wool  from  the  mountains  to  the  mar- 
kets. This  wool  is  very  strong,  and  when  I  asked  a  mer- 
chant the  reason  he  explained: 

"Ah,  the  alpaca  live  in  the  high  lands,  and  are  obliged 
to  fight  for  every  bit  of  green  which  they  eat,  so  that 
life  is  one  continuous  struggle.  The  ordinary  sheep  are 
led  by  the  shepherd  from  one  green  pasture  to  another. 
The  result  is  that  the  alpaca  wool  is  strong  and  long; 
while  ordinary  wool  is  inferior  and  short." 

Strange  to  say,  this  same  principle  applies  to  the 
people  of  Peru  as  well  as  to  the  sheep.  The  brightest 
and  worthiest  natives  are  found  in  the  highest  re- 
gions, where  everything  must  be  raised  by  irrigation. 
The  lowest  and  poorest  Indians  are  found  in  the  most 
fertile  regions  of  the  low  lands. 

Mollendo,  the  next  port  south  from  Callao,  is  Peru's 
best  gateway,  but  as  a  town  it  is  not  attractive.  It 
owes  its  importance  to  being  the  port  of  Arequipa,  and 


138  THE  FUTURE  OF  SOUTH  AMERICA 

the  country  extending  to  Cuzco,  La  Paz,  and  the 
interior.  From  Mollendo  starts  the  railroad  which 
traverses  the  one  hundred  and  seven  miles  to  the  in- 
land city  of  Arequipa,  and  which  in  that  distance  climbs 
to  a  height  of  over  seven  thousand  feet  above  sea  level. 
Mollendo  itself  is  built  on  a  rock  one  hundred  feet  above 
the  sea,  and  the  surf  is  sufficient  to  make  landing  diffi- 
cult and  sometimes  dangerous.  Passengers  are  hoisted 
ashore  by  steam  cranes.  Mollendo  is  a  dreary  spot,  bar- 
ren and  forlorn,  as  there  is  no  vegetation,  and  nothing 
to  render  less  cheerless  the  sandy  and  rocky  streets 
with  their  rough  huts  of  matched  boards  and  sheet  iron. 
There  is  hardly  a  wheeled  vehicle  in  town,  and  all  the 
water  comes  a  distance  of  eighty-five  miles.  All  the 
business  is  that  connected  with  the  railway  and  the 
shipping. 

The  railroad  runs  from  Mollendo  some  miles  south 
along  the  shore,  then  turns  and  begins  its  zigzag  climb 
into  the  mountains.  In  two  hours  it  reaches  a  height 
of  four  thousand  feet,  at  the  station  of  Cachendo,  which 
is  on  an  extensive  table-land  of  sand  and  gravel,  abso- 
lutely barren.  Crossing  this  and  still  ascending,  one 
finally  arrives  at  Arequipa,  the  second  city  of  Peru, 
resting  on  a  gentle  slope  on  both  sides  of  the  river  Chile. 
It  was  a  rest-house  station,  in  the  time  of  the  Incas,  for 
the  swift  Indian  runners,  who  are  said  to  have  traveled 
to  the  shore  and  carried  up  fresh  fish  for  the  monarch  at 
Cuzco.  Pizarro  chose  this  spot  for  a  Spanish  stronghold 
between  the  interior  table-land  and  the  coast,  and  it 
became  the  seat  of  a  bishop.  -  Here  have  been  built 
many  churches  and  convents,  and  here  there  still  lingers 
an  air  of  antiquity  and  a  sort  of  Oriental  quality  which 
is  surprising  in  a  region  so  far  from  the  East. 


PERU  139 

There  are  far  more  churches  in  Arequipa  than  seem 
needed  in  a  city  of  its  size.  People  are  apparentl}'  at- 
tending some  service  most  of  the  time,  and  one  sees 
many  priests  in  the  streets.  Some  of  the  churches  show 
decoration  and  ornamentation  of  varying  degrees  of 
excellency,  and  the  cathedral  contains  a  picture  attrib- 
uted to  Van  Dyck. 

The  houses  are  only  one  story  in  height,  for  another 
earthquake  is  expected  at  any  time;  but  they  are 
mostly  built  of  stone  with  vaulted  roofs.  This  light- 
colored,  porous,  volcanic  stone  is  given  a  fine  finish 
when  used  for  the  walls  of  houses,  and  richly  carved  on 
the  fronts  of  churches.  The  buildings  are  painted  in 
delicate  shades  of  blue,  pink,  green,  or  cream.  The 
walls  here  are  even  thicker  than  in  Lima,  and  it  is  esti- 
mated that  one  third  the  area  of  Arequipa  is  occupied 
by  foundation  and  partition  walls.  The  streets  are 
narrow  but  straight,  and  roughly  paved  with,  cobble- 
stones of  lava.  A  stream  of  water  from  the  river  runs 
down  the  side  of  most  of  them,  and  this  also  serves  as 
an  open  sewer.  There  are  few  wheeled  vehicles,  but 
everybody  rides  either  on  horse  or  donkey. 

Though  this  city  is  a  thousand  feet  higher  than  the 
top  of  Mt.  Washington,  yet,  as  it  is  in  the  torrid 
zone,  the  sun  has  great  power.  The  dry  desert  air  is 
thin  but  invigorating,  and  I  like  the  climate  very  much. 
No  artificial  heat  is  used,  though  the  mercury  may 
drop  to  36°  or  lower  in  the  night.  In  the  daytime, 
though  it  is  warm,  it  never  becomes  as  hot  in  Arequipa 
as  in  Philadelphia  or  St.  Louis.  As  in  other  tropical 
cities,  no  one  works  in  the  middle  of  the  day,  nor 
indeed  very  much  at  any  other  time,  except  perhaps 
a  few  foreigners  in  offices  or  Indians  in  gardens.     If 


140  THE  FUTURE  OF  SOUTH  AMERICA 

more  work  were  done  in  the  line  of  cleaning  up  and 
watering  the  city,  beautifying  it  by  planting  trees 
and  shrubs  which  would  relieve  the  intense  glare  of 
the  sun,  Arequipa  would  not  be  a  bad  place  in  which 
to  live. 

The  clearness  of  the  air  makes  it  especially  attractive 
to  astronomers,  as  here  the  stars  shine  with  very  great 
brilliancy.  Harvard  University  maintains  two  meteoro- 
logical observatories  on  El  Misti,  one  of  the  surrounding 
mountains,  the  highest  being  near  the  top,  at  an  eleva- 
tion of  nineteen  thousand  two  hundred  feet.  There  are 
also  meteorological  and  astronomical  observatories  at 
Arequipa.  This  El  Misti  is  a  volcano,  with  two  great 
craters,  the  larger  a  half  mile  across.  It  has  not  had 
an  eruption  for  many  years,  but  vapor  and  smoke  al- 
most constantly  rise  from  it  in  varying  quantities. 

There  are  cotton  and  woolen  mills,  tobacco  factories, 
a  foundry,  a  brewery,  and  car  shops  in  Arequipa;  but 
its  best  assets  are  the  old  buildings  and  architectural 
specimens.  It  is  a  quaint  city  with  an  Eastern  touch 
of  color.  On  the  streets  are  seen  many  Indians  dressed 
in  gayly  colored  blankets,  and,  so  far  as  my  observation 
goes,  they  have  an  honest  and  happy  disposition.  With 
better  hotels,  Arequipa,  Cuzco,  and  La  Paz  would  be- 
come popular  centers  for  tourists. 

The  resources  of  Peru,  with  its  three  parallel  moun- 
tain ranges,  its  great  streams  in  the  eastern  part,  and  its 
narrow  desert  coast  on  the  west,  may  be  divided  into 
four  classes: 

First,  rich  gold,  silver,  copper,  and  iron  ores  in  the 
mountainous  districts.  The  river  valleys  also  are  rich 
in  placer  gold,  whose  quantity  and  value  are  attested 
by  the  fact  that  they  were  worked  for  centuries,  and 


SAf  KS  OF  UKK  ON    THK   UAILWAY   l'LATF(JU.M,  CEHHO  DE  PASCO,  P 
AND  THE   MINE   FHO.M   WHICH   IT  CAME 


PERU  141 

were  abandoned  in  almost  every  case  only  on  account  of 
lack  of  water  or  transportation  facilities. 

Second  in  importance  are  the  fertile  valley  lands, 
capable  of  producing  exceptionally  fine  sugar  and  cotton. 
There  are  also  large  tracts  bearing  coffee,  cacao,  coca, 
and  cinchona  trees,  and  areas  containing  vineyards 
known  to  have  been  cultivated  since  early  in  the  six- 
teenth century.  Beyond  these  river  lands  arc  immense 
areas  with  grazing  plains  which  feed  the  world's  famous 
alpaca  flocks,  and  which  need  only  irrigation  to  be- 
come rich  and  fertile. 

Third,  the  great  forests  of  the  eastern  part  abound  in 
rubber  and  other  valuable  trees.  This  section  has 
direct  water  routes,  by  the  great  rivers  flowing  to  the 
east,  to  the  markets  of  Brazil. 

Fourth,  the  territory  rich  in  petroleum  and  the  great 
deposits  of  guano. 

Mining  should  be  given  the  leading  place  among 
Peru's  resources.  Copper  occupies  first  position,  fol- 
lowed by  silver,  crude  petroleum,  gold,  coal,  and  lead. 
The  richest  mining  region  now  is  that  included  be- 
tween the  two  great  branches  of  the  Andean  Cordillera. 
In  this  region  there  are  gold  mines  with  deposits  of  coal 
so  near  as  to  assist  in  the  gold  operations.  The  Depart- 
ment of  Junin,  in  which  is  the  celebrated  Cerro  de  Pasco 
mining  district,  stands  at  the  head  of  the  producing 
sections,  containing  deposits  of  all  the  minerals  men- 
tioned, and  also  vanadium,  recently  discovered. 

Peru's  coal  deposits  are  both  ])ituminous  and  anthra- 
cite. The  anthracite  fields  lie  in  the  north,  while  the 
bituminous  fields  are  widespread.  The  annual  output 
is  about  three  hundrcfl  thousand  tons.  The  country 
produces  the  oil  which  is  used  on  the  Peruvian  railways. 


142  THE  FUTURE  OF  SOUTH  AMERICA 

The  oil  is  also  exported,  some  to  Chile  for  fuel  in  the  ni- 
trate works,  some  to  California,  and  some  to  Japan. 

The  Cerro  de  Pasco  Mining  Company  averages  an- 
nually about  forty-five  million  pounds  of  copper  bars, 
containing  also  gold  and  silver.  The  company  has  a 
hydro-electric  plant  developing  ten  thousand  horse 
power,  costing  about  two  million  dollars,  the  machin- 
ery for  which  was  contracted  for  in  the  United  States. 

A  leading  authority  on  Peru  writes  as  follows  regard- 
ing the  progress  of  mining  industries  of  that  country : 

The  increase  of  the  output  of  copper,  coal,  silver,  gold, 
petroleum,  lead,  salt,  borax,  vanadium,  and  the  like,  proves 
to  what  an  extent  the  mining  industries  are  flourishing  in 
Peru.  The  number  of  mining  claims  denounced  in  the 
country  reaches  to  something  like  twenty-three  thousand. 
Hydraulic  mining  is  attracting  great  attention  and  some  good 
results  are  expected  from  the  works  in  operation.  The  ferro- 
vanadium  from  the  Ragra  Mine  in  Peru  is  being  worked  by  the 
American  Vanadium  Company  in  Pittsburg.  This  is  at 
present  the  greatest  discovered  deposit  of  vanadium  in  the 
world.  Through  the  very  up-to-date  methods  being  used  at 
the  vanadium  works  in  Bridgeville,  belonging  to  the  Ameri- 
can Vanadium  Company,  the  use  of  vanadium  steel  in  the 
engineering  industries  has  very  largely  increased,  much  to  the 
satisfaction  of  the  manufacturers  of  articles  in  the  composi- 
tion of  which  strength  and  elasticity  are  essentials  to  their 
lasting  qualities. 

Tungsten,  bismuth,  mercury,  molybdenum,  and  antimony 
are  likewise  being  mined  in  Peru.  Chlorides,  salts,  borates, 
nitrates,  limes,  natural  cements,  marbles,  granites,  and  sev- 
eral kinds  of  volcanic  stones  are  everywhere  to  be  found 
throughout  the  length  and  breadth  of  Peru.  Recently  a  re- 
port was  current  that  an  emerald  mine  had  been  located  in 
the  vicinity  of  Cuzco;  while  pearls  have  been  found  along 
the  coast  of  Sechura. 

Iron  ores  are  known  to  exist  in  regions  where  coal  is  plen- 
tiful, and  as  the  western  and  eastern  slopes  of  the  Andes 


PERU  143 

abound  in  waterfalls  there  seems  to  be  no  end  of  water  avail- 
able for  power,  and  consequently  it  is  not  out  of  the  way  to 
predict  that  within  a  few  years  Peru  will  become  one  of  the 
industrial  nations  of  the  American  continent. 

Some  one  has  reckoned  that  since  seven  thousand 
million  dollars'  worth  of  silver  has  been  mined  in  Peru 
since  its  discovery,  this  smn  would  make  enough  silver 
dollars  to  circle  the  earth  nearly  seven  times  if  the  coins 
were  laid  edge  to  edge  around  the  globe.  When  we 
realize  that  lack  of  transportation  facilities  and  inade- 
quate means  for  modern  mining  have  hampered  the  ob- 
tairmaent  of  the  silver  and  other  metals  so  abundant  in 
the  mountain  regions  of  Peru,  we  may  well  look  for- 
ward to  a  time  when,  with  the  modern  improvements 
and  increased  capital,  Peru  may  lead  the  world  in 
mineral  production  —  with  the  possible  exception  of 
the  United  States. 

If,  as  has  been  said,  "copper  is  the  metal  of  the 
future,"  Peru  may  expect  great  wealth,  especially 
from  her  copper  mines.  Electricity  and  copper  are  so 
closely  connected  that  one  can  hardly  think  of  one 
without  the  other,  and  the  constant  use  and  improve- 
ment of  electrical  machines  of  all  kinds  demand  large 
quantities  of  the  red  metal.  Indeed,  it  would  be 
difficult  to  enumerate  all  the  uses  to  which  copper  is 
put  in  the  sciences  and  arts. 

It  has  been  said  that  the  two  chief  products  of  the 
northw^est  coast  of  South  America  are  minerals  and 
revolutions!  Certainly  minerals  are  abundant,  but 
let  us  hope  that  the  soil  is  becoming  less  fertile  for 
revolutions.  Foreign  capital  has  heretofore  been  useful, 
without  doubt,  in  working  both  of  these  products,  but 
there  are  also  many  other  opportunities  for  the  foreigner. 


144  THE  FUTURE  OF  SOUTH  AMERICA 

I  am  convinced  that  Peru's  future  lies  in  irrigation. 
Unquestionably  there  are  great  undeveloped  mines  of 
gold,  silver,  and  copper,  but  mining  does  not  perma- 
nently build  up  a  country.  What  astonishes  me  is  to 
see  men  search  the  mountains  of  Peru  for  metals,  while 
great  rivers  of  water  are  running  through  rich,  unculti- 
vated prairies  to  the  sea.  If  these  rivers  were  dammed, 
and  the  water  raised  to  flow  over  the  land,  Peru  would 
become  a  veritable  Garden  of  Eden.  To  see  these  great 
stretches  of  desert  causes  one  to  think  that  they  are 
incapable  of  development.  This  apparent  sand  is, 
however,  very  rich.  It  is  necessary  only  to  throw  a 
seed  into  this  parched  yellow  earth,  pour  on  a  little 
water  each  day  or  so,  and  soon  will  be  grown  the  tallest 
stalk  of  corn  any  reader  has  ever  seen. 

The  wealth  of  the  United  States  and  most  other 
nations  comes  from  agriculture.  Fortunately,  agri- 
culture takes'  second  place  in  the  industries  of  Peru,  the 
chief  crops  being  cotton,  sugar,  and  rice.  The  sugar  is 
largely  exported  to  England  and  Chile  for  refining; 
why  not  to  the  United  States?  The  cotton  raised  is 
the  finest  quality,  commanding  a  price  ten  per  cent, 
higher  than  other  cotton.  Peru  is  the  sole  source  of  the 
world's  supply  of  gray  "wool"  cotton.  So  closely  does 
its  fiber  resemble  wool,  that  the  entire  product  is  util- 
ized in  the  manufacture  of  "woolen"  goods,  which  are, 
in  certain  respects,  improved  by  the  admixture.  The 
best  grades  are  grown  near  Piura  and  shipped  from 
Payta,  the  high  quality  being  attributed  to  the  pecu- 
liarities of  soil  and  climate  for  which  this  narrow  belt 
of  coast  is  noted.  Five  good  crops  may  be  obtained 
from  one  planting,  the  third  year  representing  the 
maximum    yield.     Irrigation  is  now  necessary  for  all 


PERU  145 

crops  in  western  and  central  Peru ;  but  this  fact  often 
makes  it  possible  to  raise  crops  at  any  time.  In  Piura 
there  is  already  a  canal  twentj'-two  miles  long. 

There  are  well-equipped  cotton  factories  in  Lima, 
Arequipa,  and  lea.  As  every  one  knows,  the  by-prod- 
ucts of  cotton  are  useful,  and  increase  its  value  at  least 
one  fourth.  Although  it  is  being  more  extensively  cul- 
tivated every  year,  yet  so  far  the  demand  continues  to 
exceed  the  supply.  Tobacco,  coffee,  wheat,  corn,  vege- 
tables, and  garden  stuffs  are  also  raised. 

The  cultivation  of  coca,  from  which  cocaine  is  ob- 
tained, is  carried  on  extensively  in  certain  sections, 
especially  in  the  Cuzco  Valley,  there  being  about  twenty- 
five  factories  devoted  to  this  business.  The  Indian  is 
very  fond  of  chewing  the  leaves  of  this  plant  for  the 
pleasant  stimulation  which  it  produces.  When  he  mas- 
ticates it  with  a  little  clay,  he  finds  in  it  a  support  which 
enables  him  to  endure  fatigue  without  food  for  long 
periods.  Perhaps  it  is  especially  suitable  for  those  who 
are  obliged  to  work  at  high  altitudes. 

The  Oroya  Railroad,  from  Lima  up,  and  then  up,  one 
of  the  most  wonderful  engineering  feats  in  the  world, 
is  the  work  of  an  American,  and,  as  one  traveler  has  it, 
is  "the  marvel  feat  of  the  adventurous  Meiggs,  true 
son  of  Uncle  Sam,  the  last  word  of  all  engineering  and 
its  most  daring  expression."  He  also  built  the  road 
from  Mollendo  to  Arequipa  and  on.  His  fame  is 
perpetuated  by  a  mountain  near  the  Oroya  road,rechris- 
tened  ]\It.  Meiggs  in  his  honor.  This  peak  is  two  thou- 
sand feet  above  the  highest  part  of  the  road,  which 
itself  runs  along  this  Andean  roof  at  a  height  of  15,665 
feet.  Other  railroads  are  in  process  of  construction, 
and  many  more  are  needed  in  Peru. 


146  THE  FUTURE  OF  SOUTH  AMERICA 

At  present,  the  most  promising  of  the  Peruvian  rail- 
way projects  are  the  extension  of  the  hne  from  Chim- 
bote  and  the  proposed  hne  from  Payta  to  a  port  on  the 
Marafion  River,  which  is  designed  to  run  from  Piura, 
by  Sullana,  Tambo,  Sahtral,  PorcuUa  (the  highest  point 
of  sixty-six  hundred  feet),  to  a  point  near  Limon  on  the 
Marafion.  The  total  length  of  the  railway  will  not  be 
much  more  than  four  hundred  miles,  and  the  terminus 
of  the  line  is  within  easy  reach  of  Iquitos  on  the  Ama- 
zon. A  less  important  project  is  a  line  to  connect 
Oroya,  or  Cerro  de  Pasco,  with  Iparia,  a  port  on  the 
Ucayali.  This  would  carry  some  of  the  minerals  as 
well  as  the  products  of  the  Montana  down  the  Amazon 
route.  Yet  a  third  railway  is  proposed  from  Checcacupe 
on  the  Arequipa  Railway  to  a  port  on  the  Madre  de 
Dios  River.  It  will  be  years  before  all  these  projected 
lines  are  finished,  and  each  one  will  be  a  rival  to  the 
Panama  Canal.  The  sugar  and  cotton  of  the  coast  will 
still  be  shipped  from  Callao  by  Panama,  but  ahnost  all 
the  other  merchandise  of  Peru  will  go  by  the  river  routes. 
The  more  the  resources  and  communications  of  Peru 
are  developed,  the  greater  will  be  the  wealth  of  Lima 
and  the  more  civilized  districts,  which  will  always  de- 
pend on  the  canal. 

One  of  the  crying  needs  in  South  America  is  good 
hotels.  The  people  who  travel  on  that  continent  come 
back  complaining  of  the  hotel  accommodations,  espe- 
cially on  the  west  coast.  The  railways  should  build 
hotels  here,  as  has  the  Santa  Fe  in  the  United  States. 

Peru  acknowledges  that  she  alone  has  done  about 
all  she  can  afford  to  do  in  the  way  of  railways,  irriga- 
tion, and  other  development.  She  now  needs  more 
capital,  and  makes  an  appeal  for  it.     She  believes  that 


PERU  147 

if  the  foreigner  will  come  in  and  help  develop  her  land 
and  increase  her  productiveness,  it  will  not  onlj'  bring 
hira  great  profits,  but  will  give  her  more  money  with 
which  to  buy  goods  from  this  country.  Peru  argues 
that  much  of  our  development  in  railroads  and  other 
great  improvements  have  been  brought  about  through 
foreign  capital,  and  that  now  is  our  chance  to  help  in 
the  same  way  a  small  sister  republic.  Every  impor- 
tant Peruvian  whom  I  met  appealed  to  me  to  tell  my 
readers  to  visit  and  study  Peru. 

With  the  exception  of  Ecuador,  Peru  gains  more  than 
any  other  South  American  republic,  as  far  as  the  short- 
ening of  the  distance  is  concerned,  from  the  Panama 
Canal.  The  distance  saved  between  Callao  and  New 
York  is  6,250  miles,  while  4,043  miles  are  saved  be- 
tween Callao  and  Liverpool.  Not  only  that,  but  of 
course  the  old  route  to  New  York  by  the  Strait  of 
Magellan  cost  more  in  wages  and  coal — nearly  three 
times  as  much,  in  the  case  of  a  trip  to  New  York,  and 
twice  as  much  to  Liverpool.  It  seems  therefore  rea- 
sonable to  suppose  that  much  of  the  oversea  trade  to 
Peru  w411  henceforth  go  through  the  canal. 

It  must,  however,  be  remembered  that  a  part  of  Peru, 
the  Montana,  east  of  the  mountains,  which  is  believed 
by  many  to  be  one  of  Peru's  greatest  assets,  has  no 
bearing  on  the  canal.  Iquitos,  on  the  Amazon,  is 
already  the  second  port  of  the  republic,  having  about  a 
cjuarter  the  trade  of  Callao,  and  all  the  produce  of  east- 
ern Peru  goes  down  the  Amazon  to  the  Atlantic.  The 
Montana  has  Ijcen  producing  rubber  amounting  to 
alx)ut  six  million  dollars  annually,  and  also  exports 
cacao,  coffee,  cocaine,  ivory  nuts,  and  many  other 
tropical  articles.    With  improved  means  of  communica- 


148  THE  FUTURE  OF  SOUTH  AMERICA 

tion,  this  trade  may  be  largely  increased;  but  however 
large  it  may  become,  these  products  will  not  go  over  the 
barrier  of  the  Andes,  but  down  the  incomparable  water- 
ways which  give  Peru  cheap  and  easy  access  to  Europe. 

Great  Britain  now  has  more  trade  with  Peru  than 
has  any  other  country.  As  she  also  has  most  of  the 
shipping  trade,  she  is  naturally  much  interested  in  the 
shorter  course.  The  United  States  will  doubtless  gain 
considerably  more  than  Great  Britain,  but  our  ad- 
vantage is  hardly  likely  to  be  sufficient  for  some  time 
to  transfer  the  carrying  trade  from  the  British  flag. 
It  is  not  probable,  for  instance,  that  the  people  of  the 
United  States  will  greatly  increase  their  exports  of 
textiles  to  Peru,  merely  because  they  can  get  the  goods 
there  more  quickly.  For  some  time  to  come,  textiles 
can  be  purchased  by  the  Peruvians  more  cheaply  in 
Great  Britain. 

Though  most  of  the  Peruvian  railways  are  under 
British  control,  they  get  much  of  their  material  from 
Belgium  and  the  United  States.  It  would  seem  as  if  the 
United  States  ought  to  gain  more  than  any  other  coun- 
try in  the  use  of  the  canal,  but  this  remains  to  be  seen. 
We  must  be  willing  to  study  South  American  condi- 
tions, needs,  and  manners  —  as  do  the  Germans  —  if 
we  are  really  to  get  a  strong  foothold  in  Peru,  or  any 
other  country  of  the  continent.  Peru  is  poor,  and  needs 
capital,  labor,  and  initiative  more  than  anything  else. 
About  fifty-seven  per  cent,  of  the  population  are  In- 
dians who  cannot  spend  much  on  foreign  goods.  Hence, 
unfortunately,  the  outlook  for  immediate  profits  on 
investments  does  not  seem  bright  enough  to  encour- 
age foreign  investors.  With  constant  revolutions  and 
boundary  quarrels  with  her  neighbors,  Peru's  future  is 


PERU  149 

still  rather  unsettled.  In  short,  Peru  is  to-day  poor  — 
yes,  even  land  poor.  Her  progress  will  be  slow,  but 
this  progress  will  be  constant,  and  we  should  be  pre- 
pared to  have  a  part  therein. 

Peru  needs  immigration  of  active  and  progressive  peo- 
ple. The  Spanish  will  never  do  more  for  South  America 
than  they  have  done  for  their  own  country,  while  In- 
dians are  more  or  less  the  same  throughout  the  world. 
To  develop  Peru,  new  blood  is  needed,  and  it  must  be 
brought  into  the  country  in  such  quantities  as  to  change 
the  customs  and  policy  of  the  nation.  This  would  re- 
sult in  a  much  needed  separation  of  Church  and  State, 
with  a  corresponding  reformation  in  national  govern- 
ment. The  future  of  Peru  is  handicapped  by  the 
Church,  which,  being  very  influential  in  controlling  the 
State,  does  not  want  to  be  "separated,"  while  the  law- 
yers and  military  class,  who  alternately  control  the 
elections,  do  not  want  to  be  "reformed."  Hence  cer- 
tain controlling  interests,  although  friendly  to  capi- 
tal when  it  does  not  interfere  with  church  or  politics, 
are  opposed  to  that  immigration  upon  which  the  future 
of  Peru  depends. 

In  considering  business  and  investments  in  these 
South  American  countries,  the  condition  of  the  govern- 
ment has  a  distinct  bearing  on  the  problem,  and  in  this 
regard  the  people  of  the  United  States  get  very  few 
real  or  complete  facts.  There  are  three  reasons  for  this. 
The  people  of  these  countries  are  very  hospitable  and 
courteous.  They  are  always  gracious  to  all  citizens  of 
the  United  States  who  visit  them,  and  after  a  man  has 
been  royally  entertained,  it  is  not  easy  for  him  to  return 
home  and  say  any  unkind  things  about  his  hosts. 
Hence,  as  all  men  of  importance  are  thus  entertained. 


150  THE  FUTURE  OF  SOUTH  AMERICA 

it  is  very  difficult  to  find  many  of  authority  who  will 
give  out  the  real  truth  to  the  public.  Again,  most  of 
the  information  about  South  America  which  is  distrib- 
uted in  the  United  States  comes  from  the  Pan-American 
Union,  a  distinctly  optimistic  organization.  Naturally, 
nothing  about  unstable  political  conditions  can  appear 
in  their  literature.  Finally,  the  reports  of  the  consuls 
are  carefully  blue-penciled  in  Washington,  and  little  is 
published  about  revolutions,  strikes,  and  failures. 

In  Peru,  revolutions  still  occur,  although  it  must  be 
admitted  that  the  people  seem  little  disturbed  by  them. 
According  to  the  constitution,  Peru  has  a  president, 
one  or  more  vice-presidents,  a  senate,  and  a  house  of 
representatives,  supposed  to  be  elected  by  direct  pop- 
ular vote  for  a  term  of  six  years,  and  a  judicial  depart- 
ment. Every  citizen  over  twenty-one  who  can  read 
and  write  is  entitled  by  law  to  vote,  but  my  friends 
who  have  lived  many  years  in  Peru  tell  me  that  it 
is  difficult  to  find  many  who  bother  to  vote  unless 
they  are  members  of  the  army  or  employees  of  the 
government.  Incidentally,  the  government  owns  and 
operates  the  postal  and  telegraph  lines,  excepting  the 
railway  telegraphs. 

Although  President  Oscar  R.  Benevides,  whom  I 
quote  later,  was  undoubtedly  a  thoroughly  good  presi- 
dent, a  delightful  man,  and  friendly  to  the  United  States, 
yet  it  must  be  remembered  that  he  was  not  elected  by 
the  people  of  Peru.  This  is  nothing  against  him,  as  few 
presidents  of  the  country  have  been  elected  by  the 
masses;  indeed,  it  may  be  in  his  favor.  Personally  I 
believe  that  revolutions  have  a  legitimate  economic 
function  until  real  democracy  is  granted.  This  applies 
not  only  to  South  American  countries,  but  to  the  world 


PERU  151 

as  a  whole.  Onlj'  when  the  principles  of  democracy 
are  applied  to  determining  world  policies  will  the  eco- 
nomic causes  of  war  be  eliminated. 

Since  the  country  obtained  its  freedom  from  Spain 
in  1824  the  control  of  the  govermnent  has  s^\•ung  back 
and  forth  between  military  and  civil  authority.  The 
last  legal  president  before  my  visit  was  said  to  have 
been  Legere,  whose  term  expired  a  few  years  ago.  His 
successor  was  elected,  but  apparently  he  was  not 
wanted  by  the  interests  which  controlled  the  police 
and  the  army,  so  that  sufficient  police  protection  was 
not  furnished  on  election  day.  This  resulted  in  con- 
fusion in  certain  sections,  and  the  election  was  de- 
clared illegal.  Congress  was  then  induced  to  elect 
Billinghurst  president. 

After  the  lapse  of  a  couple  of  years,  certain  interests 
decided  that  President  Billinghurst  had  served  long 
enough.  There  is  no  need  of  "recalls"  in  Peru.  The 
courtly  Colonel  Benevides  went  to  the  capital  with  a 
lx)dy  of  men  and  asked  Billinghurst  to  resign.  As  Mr. 
Billinghurst  thought  he  was  too  young  to  die,  he  gra- 
ciously resigned.  Although  there  were  one  or  two 
vice-presidents,  neither  of  them  was  apparently  con- 
sidered as  his  successor.  They  wanted  to  live  longer, 
s<j  perhaps  they  resigned  likewise.  Colonel  Benevides 
thereupon  assumed  the  presidency,  "because  there 
was  no  one  else  to  serve."  This  was  only  in  Feb- 
ruary, 1914. 

Now  I  am  not  telling  this  story  in  disparagement  of 
any  president  of  Peru.  I  simply  want  readers  to  under- 
stand that  there  may  be  no  such  thing  as  a  "  Republic  of 
Peru"  as  we  understand  the  term.  Liberty  of  govern- 
ment, liberty  of  speech,  liberty  of  worship,  as  we  know 


152  THE  FUTURE  OF  SOUTH  AMERICA 

such  liberty,  does  not  exist  in  Peru  to-day.  Votes  are 
said  to  be  bought  and  sold  so  that  the  men  who  con- 
trol the  army  and  the  police  elect  the  congressmen 
and  president.    Whether  this  is  so,  I  do  not  know. 

It  is  probably  true  that  these  revolutions  do  not 
disturb  business  any  more  than  our  presidential  elec- 
tions in  the  United  States,  nor  do  they  cost  as  much; 
but  one  certainly  cannot  tell  when  revolutions  are 
coming  as  we  can  anticipate  our  elections.  How- 
ever all  this  may  be,  Peru  is  an  attractive  country, 
with  a  lovable  people.  With  the  proper  amount  of 
irrigation  and  with  suitable  immigration,  it  should  de- 
velop as  rapidly  as  our  Western  States.  The  most 
prominent  business  men  think  so,  and  this  is  well 
illustrated  by  my  interview  with  President  Bene- 
vides,  a  well-groomed  man  who  looks  much  like  a 
New  York  banker.  His  suggestions  are  the  more  valu- 
able because  they  are  addressed  not  only  to  manufac- 
turers and  exporters,  but  to  all  people,  showing  them  an 
opportunity  to  help  in  gaining  South  American  trade. 
He  said: 

"Urge  the  American  people  to  insist  that  Spanish  be 
taught  in  every  high  school  in  your  land.  I  understand 
that  in  the  commercial  high  schools  of  a  few  of  your 
cities,  the  language  is  already  taught;  but  this  is  not 
enough.  It  is  unreasonable  that  there  are  hundreds 
of  your  schools  teaching  German  to  every  one  that  is 
teaching  Spanish.  Not  only  does  our  mutual  safety  as 
Americans  (for  we,  the  citizens  of  Peru,  are  as  much 
Americans  as  are  the  citizens  of  the  United  States)  de- 
pend upon  a  union  of  the  English  and  Spanish  races; 
but  our  mutual  financial  interests  depend  upon  the 
same  thing. 


PERU  153 

"The  thoughts  of  the  children  of  a  nation  are  uncon- 
seiousl}''  focused  on  those  nations  whose  language  they 
are  taught  in  the  public  schools.  If  you  want  your 
people  to  be  interested  in  Germany  and  France,  and  to 
have  no  interest  in  South  America,  then  continue  to 
exclude  the  teaching  of  Spanish  from  your  schools. 
But  if  3'ou  want  the  masses  of  your  people  to  become 
interested  in  South  America,  then  insist  that  Spanish 
shall  be  taught  in  every  high  school  in  your  land. 

"For  entrance  into  college,  Spanish  should  be  re- 
quired, with  an  option  of  either  French  or  German. 
We  are  teaching  our  Peruvian  children  English  and 
French.  We  are  doing  this  not  for  the  purpose  of  mak- 
ing salesmen  of  them,  to  send  into  the  United  States  and 
elsewhere ;  but  because  we  want  to  focus  their  attention 
on  your  country.  We  want  our  children  to  know  more 
about  our  brothers  in  North  America.  We  can  best 
accomplish  this  by  teaching  them  English. 

"We  want  your  people  to  know  more  about  us;  not 
your  big  corporations  and  banks,  but  the  masses  in 
your  country.  In  order  to  form  closer  relations  between 
the  two  great  continents  of  North  and  South  America, 
there  must  be  a  closer  relation  between  the  great 
'common'  people  of  the  two  continents." 

I  then  asked  the  President  wherein  the  people  of  the 
United  States  had  failed  in  their  relations  to  South 
America. 

"  What  is  it,"  said  I,  "that  we  have  done  in  our  deal- 
ings with  South  America  which  we  should  not  have 
done,  or  left  undone  which  we  should  have  done?" 

To  this  question  the  President  replied  in  substance 
as  follows: 

"Considering  our  very  friendly  relations,  you  must 


154  THE  FUTURE  OF  SOUTH  AMERICA 

not  ask  me  to  refer  to  anything  which  you  have  done 
which  I  think  you  should  not  have  done.  I  cannot 
criticise  your  people  or  your  country.  We  Peruvians 
all  value  your  kindness  too  highly.  It  would  be  very 
unbecoming  in  the  President  of  Peru  to  criticise  in  any 
way  even  the  manufacturers  and  business  men  of  your 
country. 

"As  to  your  sins  of  omission,  I  will  venture  to  suggest 
that  your  textbooks  and  newspapers  give  too  little 
space  to  South  America.  Remember  that  this  southern 
continent  is  a  tremendous  affair  from  every  point  of 
view.  Do  your  schools  give  sufficient  attention  to  our 
importance?  Do  the  geographies  and  histories  studied 
by  your  people  give  enough  space  to  Peru?  We  want  the 
school  children  of  the  United  States  to  know  more  about 
Peru  and  its  great  natural  and  other  advantages.  I  do 
not  criticise  your  people  for  not  extending  to  us  more 
credit,  nor  for  not  better  adapting  yourselves  to  our 
ways  and  needs,  but  I  do  think  your  people  should  give 
more  time  to  visiting  our  country.  Here  you  and 
others  come  only  for  a  few  days,  hastily  seeing  only  a 
few  of  our  cities  and  talking  with  only  a  dozen  or  so  of 
our  people,  and  then  you  return  to  the  United  States 
to  give  lectures  and  write  articles  on  Peru. 

"After  you  have  been  here  and  lived  with  us,  so  as 
to  know  us  and  our  resources,  if  you  then  decide  that 
Peru  does  not  deserve  credit  and  the  like,  very  well. 
But  I  urge  you  not  to  judge  us  without  real  knowledge, 
acquired  by  personal  study  and  observation  when  pos- 
sible, and  otherwise  by  reliable  textbooks  and  histo- 
ries. Thus  my  only  criticism  is  that  the  great  and 
powerful  everyday  people  of  your  country  have  been 
taught  too  little  about  our  land  and  its  resources.    My 


PERU  155 

earnest  suggestion  to  the  people  of  the  United  States  is 
that  they  demand  a  greater  knowledge  of  Latin  America, 
which  during  the  next  fifty  j'ears  is  to  have  the  same 
wonderful  development  which  your  great  supposedly 
barren  West  has  had  during  the  past  fifty  years." 

To  check  up  this  remark,!  have  referred  to  ray  daugh- 
ter's school  geography.  I  find  one  hundred  and  thirty- 
five  pages  given  to  the  United  States,  and  only  one  to 
this  great  country'  of  Peru,  which  is  ten  times  as  large 
as  all  New  England !  The  same  book  gives  only  two  and 
a  half  pages  to  Brazil,  which  is  larger  than  the  entire 
United  States!  In  comparing  the  space  devoted  to 
North  and  South  America,  I  note  one  hundred  and 
ninety-seven  pages  describing  North  America,  and  only 
twenty-two  on  South  America.  Not  only  this,  but  only 
two  thirds  as  much  space  is  given  in  this  modern  geog- 
raphy to  the  great  and  rapidly  developing  continent  of 
South  America,  lying  at  our  very  door,  as  is  given  to 
Asia.  In  short,  out  of  a  total  of  about  four  hundred 
pages,  only  twenty-two  are  devoted  to  this  great  con- 
tinent, the  development  of  which  is  so  very  important 
to  our  political,  industrial,  and  social  welfare. 

Now  that  we  have  spent  four  hundred  million  dollars 
in  building  the  Panama  Canal,  let  us  adopt  President 
Benevides'  suggestion  and  insist  that  our  children 
shall  know  more  about  Latin  America,  its  history, 
customs,  and  opportunities.  As  he  so  tactfully  said: 
"Although  members  of  the  same  family,  we  are 
relatives  who  are  very  little  acquainted  with  one 
another." 

I  next  asked  the  President  to  forecast  the  changes 
which  are  likely  to  take  place  in  Peru  during  the  next 
twenty-five  years,  and  he  replied  that  the  development 


156  THE  FUTURE  OF  SOUTH  AMERICA 

of  Peru  would  come  about  in  three  ways  which  he 
enumerated  thus: 

(1)  Railways;  (2)  mining;  (3)  irrigation.  Con- 
cerning these,  he  said  in  substance: 

"  Most  of  all,  Peru  needs  railroads  and  means  of  trans- 
portation. As  you  know,  we  have  two  great  ranges  of 
mountains,  one  along  the  coast  at  the  west,  and  the 
other  toward  the  border  of  Brazil  on  the  east.  Between 
these  two  great  mountain  ranges  is  a  rich  and  fertile 
plateau,  about  two  hundred  miles  wide  and  eight  hun- 
dred miles  long.  Here  is  the  most  perfect  climate  in  the 
world,  and  only  railroads  are  needed  to  develop  the 
country.  These  mountain  ranges  absolutely  lock  up 
this  fertile  plateau,  and  only  by  railroads  can  they  be 
pierced.  This  can  perhaps  best  be  done  by  building 
a  railroad  from  Chimbote  to  Huarez,  and  my  govern- 
ment will  consider  itself  bound  to  secure  the  conclusion 
of  this  project.  The  wealthy  Department  of  Ancachs 
will  be  transformed  by  this  railroad.  The  same  princi- 
ple applies  to  other  projected  lines.  Of  course,  to  make 
the  railroads  pay,  their  building  must  be  accompanied 
by  colonization;  and  now  that  the  Panama  Canal  is 
open,  we  expect  much  immigration  from  Europe,  and 
will  judiciously  encourage  it. 

"Simultaneously  with  the  building  of  railroads  will 
come  mining  development  of  the  great  deposits  of 
copper,  gold,  silver,  and  lead,  as  yet  comparatively  little 
worked.  Petroleum  has  been  discovered  in  good 
paying  quantities,  and  geologists  believe  that  large  re- 
serves exist.  Coal  is  abundant,  a  large  bed  of  anthra- 
cite being  known  to  lie  in  the  hinterlands  of  Chimbote. 
These  minerals  and  coal  need  only  transportation  to 
make  them  a  source  of  great  wealth.    Tungsten  ore,  the 


PERU  157 

basis  of  the  new  incandescent  lamps,  which  are  rapidly 
becoming  so  popular,  is  also  plentiful  in  Peru.  Hence 
I  expect  that  the  immediate  future  of  Peru  will  be 
largely  mineral  during  the  next  twenty-five  years. 

"The  ultimate  future  of  Peru,  however,  is  coming 
from  agricultural  development.  Peru  has  a  possibility 
of  forty-three  million  acres  of  good  land  that  can  pro- 
duce am-thing,  of  which  only  one  million  is  now  under 
irrigation." 

As  I  have  already  indicated,  the  territory  of  the  re- 
public may  be  roughly  divided  into  three  great  natural 
divisions:  the  low,  semi-tropical  plains  and  valleys 
along  the  Pacific  coast;  the  temperate  plateau  and 
mountain  region  of  the  Andes;  the  region  of  the  great 
forests,  that  is,  the  tropical  valleys  and  slopes  of  the 
Eastern  Andes,  known  as  the  Montana. 

The  great  national  problems  are  the  irrigation  and 
colonization  of  the  coast  lands,  the  agricultural  devel- 
opment and  stocking  of  the  upland  plateaus,  the  min- 
ing development  of  the  mineral-bearing  ranges,  and 
finally  the  clearing  and  settlement  of  the  Montana. 
Thousands  of  square  miles  are  already  under  irrigation. 
Peruvian  mines  have  been  famous  for  centuries;  there 
are  many  large  cattle  ranges  in  the  interior,  and  at  least 
a  score  or  more  of  flourishing  settlements  exist  in  the 
Montana,  but  all  this  is  merely  preliminary  to  the  possi- 
bilities of  accomplishment  in  this  direction. 

Peru  is  destined  to  become  the  greatest  sugar  coun- 
try in  the  world.    There  are  four  reasons  for  this: 

1.  Peruvian  cane  runs  as  high  as  forty  tons  an  acre 
compared  with  an  average  of  twenty-two  tons  in  Cuba. 

2.  Peruvian  sugar  has  a  very  high  percentage  of 
saccharine. 


158  THE  FUTURE  OF  SOUTH  AMERICA 

3.  Sugar  can  be  started  and  ground  in  Peru  every 
month  in  the  year,  thus  enabhng  both  the  mills  and  the 
field  labor  to  be  constantly  employed. 

4.  There  are  no  storms  or  other  weather  conditions 
which  harm  the  crop.  Although  twelve  hundred  miles 
nearer  the  equator  than  is  New  Orleans,  Lima  is  twenty 
degrees  cooler  in  summer  as  well  as  twenty  degrees 
warmer  in  winter. 

The  future  of  Peru  will  witness  the  development  of 
a  great  cotton-growing  industry.  There  are  four  rea- 
sons also  for  this: 

1.  Many  Peruvians  are  growing  cotton  at  from  600 
to  900  pounds  an  acre,  with  a  maximum  of  1,384 
pounds. 

2.  The  Peruvian  average  production  is  484  pounds 
an  acre,  compared  with  the  Egyptian  average  of  390, 
the  United  States  average  of  308,  and  an  Indian  average 
of  70. 

3.  The  Peruvian  cotton  has  a  very  long  staple, 
which  is  greatly  sought  after  by  all  buyers. 

4.  The  cost  of  production  in  Peru  is  two  or  three 
cents  per  pound  less  than  in  the  United  States. 

In  addition  to  sugar  and  cotton,  much  is  being  done 
in  the  development  of  coffee  plantations  and  vineyards, 
and  the  raising  of  cacao,  coca,  tea,  rice,  olives,  fruits, 
tobacco,  and  various  vegetables  of  the  temperate  zone. 
Among  these  may  be  mentioned  potatoes  (some  claim 
that  Peru  is  the  home  of  the  potato),  beans  (we  all 
have  heard  of  Lima  beans),  barley,  wheat,  and  alfalfa. 

I  was  very  much  interested  when  in  Peru  to  see  corn 
growing  at  so  many  different  stages  in  the  same  field. 
Apparently  there  are  plantings  every  month  or  so. 
Within  a  small  area  would  be  found  corn  in  five  stages, 


PERU  159 

viz.,  two  inches  high,  a  foot  high,  just  beginning  to 
tassel,  just  ready  to  pick,  and  finally,  dry  stalks  being 
gathered  for  the  barn.  Of  course  irrigation  was  neces- 
Siiry  for  this,  as  it  is  for  securing  any  good  results  in 
certain  parts  of  Peru. 

For  water,  Peru  must  depend  upon  the  bountiful 
rivers  which  flow  from  the  snows  of  the  Andes.  Neither 
rubbers  nor  a  raincoat  can  be  purchased  in  Lima.  In 
fact,  a  week  of  rain  such  as  we  sometimes  see  in  the 
United  States  would  destroy  whole  villages!  As  many 
of  the  houses  are  made  of  adobe,  the  rain  would  melt 
them,  and  the  mud  would  run  away.  Although  so  de- 
]iendent  upon  irrigation,  Peru  blossoms  wonderfully 
with  its  aid.  The  most  valuable  lands  in  the  world  to- 
day are  not  those  having  plenty  of  rain,  without  sun- 
shine; but  those  having  the  maximum  of  sunshine  and 
the  maximum  of  irrigation. 

One  should  not  go  to  Peru  without  capital,  as  it  takes 
more  money  to  get  started  in  Peru  than  perhaps  in 
some  of  the  other  South  American  countries.  Mining 
always  takes  money;  irrigation  is  like\\ise  expensive 
in  the  begimiing,  and  agriculture  in  Peru  must  always 
be  an  irrigation  proposition.  Again,  mining  and  irri- 
gation lands  must  be  purchased  with  real  cash.  They 
cannot  be  taken  up  as  "homesteads,"  or  bought  from 
railroads  at  a  few  dollars  an  acre.  Hence  the  future  of 
Peru  depends  upon  immigration  that  can  command 
capital.  Let  those  of  us  who  love  Peru  do  our  best 
to  secure  for  it  such  people. 


CHAPTER  XI 

Bolivia 

Imagine  a  country  as  large  as  the  whole  of  Germany 
and  Austria,  cut  up  by  great  mountain  ranges,  and  hav- 
ing only  a  few  miles  of  railroad.  Imagine  this  country 
without  a  seacoast  —  the  third  largest  country  in  South 
America  —  to  have  a  population  equal  to  that  of  Berlin 
and  its  suburbs  scattered  over  its  immense  area.  Im- 
agine these  people  to  be  savages  —  there  are  but  two 
hundred  thousand  white  people,  and  these  mostly  in  the 
cities  —  or  semi-civilized  Indians,  most  of  whom  have 
never  seen  a  train  of  cars  or  even  a  four-wheeled  cart, 
speaking  several  different  languages.  Imagine  these 
people,  without  education  or  means  of  communica- 
tion, trying  to  have  a  republic. 

Yet  Bolivia  has  a  government  very  much  like  our  own, 
with  a  congress,  judiciary,  and  a  president.  The  in- 
habitants are  supposed  to  have  equal  suffrage  and  be  a 
free  people.  It  is  needless  to  say,  however,  that  a  very 
small  minority  control  the  government  of  Bolivia. 
The  future  of  real  republican  government  in  Bolivia 
depends  upon  more  railroads,  schools,  and  other  means 
of  making  the  people  more  homogeneous. 

Bolivia  is  an  artificial  creation  without  natural 
boundaries  or  physical  characteristics  distinctive  from 
those  of  its  neighbors.  When  this  territory  was  freed 
from  the  Spaniards  and  named  for  the  great  "Liber- 
ator," Simon  Bolivar,  it  had  a  seacoast,  but  this  was 


BOLIVIA  Ml 

lost  later  in  an  inifortimatc  war  with  Chile.  Thus  all 
the  commerce  with  Bolivia  has  first  to  pass  through  an- 
other country,  which  puts  the  Bolivians  in  an  vnifortu- 
nate  commercial  position.  There  are  now  three  ways 
of  getting  to  Bolivia.  One  may  go  from  the  Peruvian 
port  of  ]\Iollendo,  a  httle  mining  town  of  which  we 
have  many  duplicates  in  Nevada,  Montana,  and  Ari- 
zona. From  here  a  railroad  winds  up  to  Puno  on  Lake 
Titicaca,  the  highest  large  lake  in  the  world,  a  distance 
of  three  hundred  and  thirty  miles.  Here  the  goods  are 
transferred  to  small  lake  steamers  and  carried  to  the 
south  end  of  the  lake.  Again  they  must  be  unloaded 
and  placed  on  the  railroad  and  hauled  the  remaining 
SLxty  miles  to  La  Paz,  the  largest  city  of  Bolivia.  The 
city  is  a  little  more  than  twelve  thousand  feet  above 
sea  level,  and  is  only  tlu-ee  hundred  miles  from  Mol- 
lendo,  but  the  journey  takes  about  two  days. 

Or  one  may  go  to  Bolivia  from  the  Chilean  port  of 
xVrica,  the  most  direct  and  most  recently  opened  way. 
The  city  of  Oruro,  from  which  the  route  takes  its  name, 
is  twelve  thoiLSiind  feet  alwve  the  sea,  but  the  road  goes 
higher.  The  grades  on  this  road  are  very  steep,  and 
cogwheels  have  to  be  used  for  part  of  the  way.  Oxygen 
compartments  for  those  who  have  difficulty  with  the 
altitude  are  provided  in  some  of  the  cars.  The  third 
way  to  La  Paz  is  from  Antofagasta,  and  is  considered 
by  many  the  best  way,  although  the  distance  is  seven 
hundred  and  thirty  miles.  Whatever  route  the  traveler 
takes,  a  climb  of  about  fourteen  thousand  feet  above 
sea  level  is  necessary  in  order  to  cross  the  great  Andes 
that  stretch  like  a  fence  downi  the  coast  of  South 
America. 

Like  other  South  American  countries,  the  character 


162  THE  FUTURE  OF^SOUTH  AMERICA 

and  climate  of  Bolivia  differ  greatly  in  different  sec- 
tions. The  western  portion  is  very  much  like  central 
Peru,  and  has  a  fine  clear  climate.  It  has  the  appearance 
of  a  barren  desert  until  water  is  turned  on,  when  it  be- 
comes a  veritable  garden.  The  beauty  of  these  occa- 
sional cultivated  sections  of  the  desert  is  broken  now 
and  then  by  the  sight  of  rough  mining  towns;  and  mines 
are  the  principal  reason  for  the  existence  of  life  and 
business  in  Bolivia.  The  southeastern  portion  of  the 
republic  is  a  plateau  gradually  sinking  to  the  prairies 
of  Argentina,  Paraguay,  and  Brazil.  This  plateau  is 
little  used  to-day,  but  very  likely  is  possible  of  much 
development.  The  northeastern  portion  is  heavily 
wooded,  with  a  hot  and  wet  chmate,  such  as  one  finds 
in  the  rubber  jungles  of  Brazil.  This  means  a  change 
from  extreme  cold  and  dr3aiess  in  the  western  section 
to  extreme  heat  and  humidity  in  the  northeastern  sec- 
tion, while  the  southeastern  section  has  a  temperate 
climate. 

Bolivia  is  about  eight  times  the  size  of  New  England, 
and  its  resources  are  quite  as  great  as  those  of  Vene- 
zuela, Ecuador,  Colombia,  or  Peru.  The  population  is 
only  about  two  million,  or  little  over  three  to  the  square 
mile.    Most  of  the  people  are  Indians  or  "  dark  "  whites. 

La  Paz  is  the  largest  city,  and  is  the  highest  in  alti- 
tude of  any  city  in  the  world.  It  lies  in  a  canon  eleven 
hundred  feet  below  the  level  of  the  table-land.  For 
one  who  can  stand  the  altitude,  it  is  an  interesting 
place.  It  is  probably  the  most  spectacular  and  original 
city  in  the  world  to-day,  rivaling  Cairo,  Bombay,  and 
even  Pekin.  Here  one  sees  a  beautiful  city  as  clean  as 
many  northern  cities,  crowded  with  Indians  who  vie 
with  one  another  in  wearing  gay  colors.     Llamas  are 


BOLIVIA  163 

seen  passing  up  and  dovm  the  streets  as  one  sees  auto- 
mobiles in  other  towns;  the  wild  vicunas  are  heard  in 
the  outskirts,  while  surrounding  the  city  are  vast,  snow- 
capped mountains  about  twenty  thousand  feet  high. 
La  Paz  is  a  wonderful  sight,  and  if  it  remains  as  it  is  at 
present,  our  children  will  be  going  up  there  instead  of 
up  the  Nile.  The  climate  is  fine,  although  the  tempera- 
ture averages  only  fifty  degrees.  Coal  is  very  high, 
costing  from  tliirty  to  fifty  dollars  a  ton,  so  that  fires 
are  a  luxury.  I  believe  that  the  future  of  La  Paz  is 
very  bright  if  it  is  properly  advertised  and  keeps  its 
cjuaint  and  artistic  coloring. 

Most  of  the  wealth  of  the  country  is  now  mineral, 
although  there  are  some  exports  of  coffee  and  coca,  from 
which  cocaine  is  made.  The  western  portion  of  the 
country  is  rich  in  copper  and  silver,  while  the  southern 
and  eastern  portions  are  rich  in  silver,  gold,  and  tin. 
One  third  of  the  world's  supply  of  tin  comes  from  this 
countr\'.  Borax,  nitrates,  and  various  other  chemicals 
are  also  found. 

Any  reader  wishing  to  buy  a  mine  cheap  should  go  to 
La  Paz,  where  mines  can  be  purchased  for  a  song. 
Moreover,  these  are  not  fake  mines;  they  contain  real 
deposits  of  valuable  metals.  They  are  cheap  because 
they  are  inaccessible.  Machinery  is  necessary  to  work 
them,  and  to  get  it  over  these  mountains  and  through 
the  deep  canons  is  almost  impossible,  certainly  imprac- 
ticable. However,  great  wealth  is  eventually  coming 
from  these  mines,  which  can  now  be  had  for  the  asking. 

There  is  no  manufacturing  in  the  country,  so  that 
the  imports  cover  everything  in  the  line  of  textiles  and 
machinery.  So  far  the  United  States  has  done  less  than 
one  tenth  of  the  business  there. 


164  THE  FUTURE  OF  SOUTH  AMERICA 

Although  many  disagree  with  me,  I  believe  that 
Bolivia  has  vast  agricultm-al  possibilities,  when  the 
world  needs  her  pastures.  Agriculture  must  be  car- 
ried on,  however,  by  irrigation  and  along  scientific  lines. 
At  the  present  time,  the  farmers  are  raising  corn,  maize, 
beans,  and  similar  crops,  for  local  consumption.  The 
chief  agricultural  exports  are  hides  and  wool. 

In  addition  to  La  Paz,  there  are  several  other  cities  of 
importance  as  trade  centers  for  isolated  districts. 
Oruro,  the  center  of  the  tin  mining  region,  has  twenty 
thousand  inhabitants.  Potosi,  famous  for  its  mountain 
of  solid  silver,  has  been  given  a  new  life  by  the  construc- 
tion of  a  railroad,  and  now  also  has  twenty  thousand 
inhabitants.  Sucre,  still  in  law  the  legal  capital,  has 
a  good  deal  of  wealth,  and  is  an  attractive  city  for  the 
tourist.  Cochabamba  is  the  center  of  a  great  agricul- 
tural district,  and  Santa  Cruz  is  the  most  important 
town  in  the  great  tropical  agricultural  region. 

It  may  be  fifty  years  before  Bolivia  becomes  an  agri- 
cultural country;  it  may  be  twenty  years  before  its 
mining  possibilities  are  fully  realized,  but  its  scenic  and 
historical  advantages  should  be  capitalized  at  once. 
Instead  of  taking  people  to  Egypt,  they  should  be 
taken  to  Bolivia  and  the  land  of  the  Incas.  The  future 
of  Bolivia  lies  in  making  itself  kno\^m,  and  I  can  see  no 
better  way  than  for  the  government  to  build  fine  hotels 
and  to  encourage  tourist  travel. 


CHAPTER  XII 

Chile 

After  leaving  Mollendo,  Peru,  and  sailing  south  two 
nights  and  a  da}^  the  next  port  reached  is  Arica,  in  the 
northern  part  of  Chile.  In  contrast  with  the  desert 
coast,  Arica  is  surrounded  by  green  trees  and  other  ver- 
dure, which  has  caused  one  traveler  to  call  this  little 
port  the  "Emerald  Gem  of  the  West  Coast."  Here 
there  is  an  open  harbor,  protected  on  one  side  by  El 
Morro,  855  feet  high.  The  passengers  are  landed  on  a 
stage  from  open  boats,  instead  of  being  hoisted  up  in 
chairs,  as  at  Mollendo. 

The  constant  quarrels  which  have  usually  resulted 
in  Chile's  getting  more  and  more  of  the  territory  of 
Peru,  and  therefore  the  great  wealth  of  the  nitrate 
lands,  constitute  a  large  part  of  the  history  of  this  re- 
gion, where  most  of  the  fighting  has  taken  place.  As  a 
matter  of  fact,  the  boundary  line  is  not  absolutely 
settled  yet. 

As  in  the  other  coast  cities,  the  houses  of  Arica  are 
of  one  story,  and  painted  in  various  colors.  A  highway 
constructed  by  the  Incas  to  Bolivia  is  still  in  use,  and 
ore  is  brought  down  over  it  on  llamas,  although  a  rail- 
road is  now  completed  to  La  Paz  and  beyond.  Freight 
rates  are  necessarily  high  on  account  of  the  heavy 
grades. 

At  Arica,  if  one  is  interested  in  antiquities  of  tliis 
kind,  may  be  seen  the  prehistoric  cemetery  which  con- 


166  THE  FUTURE  OF  SOUTH  AMERICA 

tains  preserved  mummies,  reputed  to  be  the  equal  of 
those  in  Egypt.  These  mummies  have  translucent 
eyes,  with  a  rich  amber  tint,  which  scientists  say  have 
been  taken  from  cuttlefish  and  substituted  for  those 
of  the  dead. 

Chile  is  the  most  curiously  shaped  country  in  the 
world.  If  Massachusetts  were  to  be  extended  westward 
through  the  Central  States  to  the  Pacific  Ocean,  it 
would  be  about  one  hundred  and  twenty-five  miles  wide 
and  nearly  three  thousand  miles  long.  Imagine  this 
belt  of  land  turned  on  end,  so  that  it  would  lie  north  and 
south  instead  of  east  and  west,  and  you  will  then  have 
an  idea  of  how  large  and  how  peculiar  is  the  shape  of 
Chile.  It  runs  up  and  down  the  west  coast  of  South 
America,  mostly  in  the  temperate  zone,  just  as  our 
own  west  coast  borders  on  the  Pacific  Ocean,  and  if  the 
southern  end  of  Chile  were  placed  at  the  southern  end 
of  Mexico,  its  northern  line  would  reach  Canada. 
It  has  thirty-eight  times  the  area  of  Massachusetts, 
but  its  population  is  considerably  less. 

Chile  is  divided  longitudinally  by  the  Coast  Range 
in  the  west  and  the  Andes  in  the  east,  and  from  San- 
tiago one  can  see  both  ranges.  According  to  zones,  the 
northern  part  to  the  twenty-ninth  parallel  is  tropical 
and  bare,  though  rich  in  minerals.  The  central  part  to 
the  thirty-eighth  parallel  is  temperate  and  includes  fer- 
tile plains  and  the  largest  towns  and  commercial  cities. 
The  southern  section,  extending  to  the  tip  of  the  conti- 
nent, is  thickly  wooded  and  subject  to  heavy  rainfall, 
but  little  developed,  and  with  a  sparse  population. 
The  central  part  is  the  real  Chile. 

It  is  obvious,  therefore,  that  one  can  obtain  at  the 
same  time  any  kind  of  climate  in  Chile.    The  northern 


CHILE  167 

part  is  alwaj's  hot  and  dry.  The  mining  zone  has  typi- 
cal Colorado  weather,  with  sunny  days  and  cold  nights. 
The  agricultural  zone  has  splendid  temperate  weather 
all  the  year  round,  very  much  like  the  weather  of  south- 
ern California,  but  with  a  rainy  season  from  June  to 
September.  The  southern  zone  is  a  good  deal  like 
parts  of  Canada,  with  much  rain,  a  short,  beautiful 
summer,  and  a  long,  bleak  winter.  The  winters  of 
Patagonia,  however,  are  not  so  cold  as  one  would  think, 
owing  to  the  great  quantity  of  surrounding  water  and 
the  very  little  land.  On  the  s;ime  day  one  can  pick  roses 
in  the  valleys  surrounding  Santiago  and  snowshoe  in  the 
Andes  east  of  the  city.  These  varieties  of  climate  should 
some  day  make  Chile  popular  with  tourists,  who  are  al- 
ready calling  it  the  "Switzerland  of  South  America." 

These  different  climates  should  also  become  valuable 
to  Chile  in  future  years  for  agricultural  and  industrial 
purposes.  Not  only  will  she  be  able  to  mine  and  raise 
the  raw  materials  necessary  for  manufacturing  almost 
every  kind  of  goods,  but  her  climate  is  suitable  for  the 
operation  of  factories  and  mills.  The  nitrate  mines  in 
the  northern  part  of  Chile  are  now  looked  upon  as 
Chile's  greatest  resources,  for  about  seventy  per  cent. 
of  her  exports  are  nitrates.  Unfortunately,  this  rock 
is  not  used  in  Chile  for  manufacturing  purposes.  The 
mining  and  shipping  of  it  is  all  there  is  to  the  industry. 
Chile's  great  mineral  resources  of  copper,  iron,  and  coal 
are  yet  undeveloped,  although  the  largest  copper  mine 
in  the  world  is  being  developed  in  the  province  of  Chu- 
quicamata.  The  Chileans  are  especially  interested  in 
their  iron  deposits,  l)elieving  that  the  time  will  soon 
come  when  blast  furnaces  and  rolling  mills  Avill  be 
erected.     They  also  have  the  same  hope  concerning 


168  THE  FUTURE  OF  SOUTH  AMERICA 

their  deposits  of  other  minerals  and  their  timbers. 
The  Chileans  are  not  so  much  interested  in  the  expor- 
tation of  these  raw  materials  to  other  lands  as  they  are 
in  their  utilization  in  Chile. 

This  is  something  about  Chile  which  the  people  of  the 
United  States  have  to  learn.  We  are  apt  to  think  that 
South  America  exists  simply  to  buy  goods  from  us. 
We  must  remember  that  some  of  the  people  of  South 
America  are  as  keen  for  developing  their  own  indus- 
tries as  we  are.  This  especially  applies  to  the  Chileans, 
and  is  the  reason  for  their  slogan:  "Chile  for  the 
Chileans." 

After  the  founding  of  Lima,  Chile  was  invaded  by  the 
Spanish,  grants  of  land  being  given  by  the  king  to 
Pizarro  and  others.  These  naturally  wanted  to  gain 
more  territory.  Encouraged  by  the  reports  given  out 
by  the  Incas  (doubtless  in  order  to  get  the  Spanish  out 
of  their  country)  that  the  regions  to  the  south  were  yet 
richer  in  gold  and  silver,  they  pushed  southward,  suf- 
fering almost  incredible  hardships.  Those  going  east 
met  with  no  success,  but  Valdivia,  going  along  the 
shore,  reached  Arica.  There  he  made  rude  vessels,  and 
proceeded  by  water,  and  in  1541  founded  the  city  of 
Santiago.  Continuing  south,  he  made  other  settle- 
ments, but  was  later  treacherously  captured  and  put  to 
death  by  the  Indians.  For  two  hundred  and  fifty  years 
the  strife  went  on  for  the  subjugation  of  the  Indians. 
Finally,  when  the  Chileans  rose  against  Spain,  the  In- 
dians joined  them  against  their  common  enemy,  and  a 
sort  of  friendliness  was  established  which  still  exists. 

The  revolutionary  movement  for  independence  which 
swept  the  American  continent  at  the  beginning  of  the 
nineteenth  century  found  an  echo  in  Chile  in  the  year 


CHILE  169 

1810.  On  the  eighteenth  of  September  of  that  j'ear, 
Chile  proclaimed  her  independence,  but  it  was  only 
after  a  struggle  of  eight  j-ears  with  Spain  that  Chile 
attained  her  desire.  An  independent  government  was 
formed,  but  there  then  arose  a  succession  of  revolu- 
tions and  dictators,  followed  by  an  era  of  anarchy. 
At  last  this  reign  of  license  was  checked  by  Diego  Por- 
tales,  a  man  of  "superior  powers,"  who  formulated  the 
"Constitution  of  1833"  and  organized  the  Chilean 
nation  along  conservative  lines.  Although  assassinated 
in  his  prime,  yet  he  was  followed  by  some  fairly  good 
men  who  carried  out  his  plans.  The  term  for  the  presi- 
dent was  then  ten  years,  and  each  served  the  full 
period,  while  the  rest  of  South  America  was  in  the 
throes  of  continual  revolution. 

The  Constitution,  established  in  1833,  has  remained 
unaltered,  \\nth  but  slight  changes,  until  the  present 
time.  The  principal  theoretical  characteristics  of  this 
Constitution  are  as  follows : 

1.  The  Government  of  Chile  is  a  "popular  and  represen- 
tative body." 

2.  The  Republic  of  Chile  is  indivisible,  i.  e.,  not  a  feder- 
ation. 

3.  The  governing  power  resides  "in  the  people"  who  con- 
fide this  power  to  the  authorities  estabUshed  by  the  present 
Constitution. 

4.  All  people  are  equal  before  the  law. 

5.  Personal  liberty  and  inviolability  of  property  are  as- 
.<^ured. 

6.  There  is  liberty  to  reside  in  any  part  of  the  country,  pro- 
vided the  police  regulation.s  arc  respected.  No  one  may  be 
arrested  without  a  warrant,  or  imprisoned  or  deported  with- 
out judicial  proceedings. 

7.  The  right  to  hold  meetings  without  prior  permission  is 
provided. 


170  THE  FUTURE  OF  SOUTH  AMERICA 

8.  The  right  to  pubUsh  any  opinion  through  the  medium 
of  the  press  is  provided. 

9.  Slavery  in  any  form  whatsoever  is  strictly  prohibited. 

10.  The  inviolabihty  of  the  home  is  guaranteed  by  the 
Constitution  to  all  residents  in  Chile,  as  also  the  inviolabihty 
of  letters  and  documents. 

Gradually  during  the  term  of  Montt,  1851-1861, 
liberal  ideas  began  to  develop,  and  in  1886  Balmaceda 
became  the  first  democratic  President  of  Chile.  As  this 
man  had  been  influential  in  Chile's  very  successful  war 
with  Peru,  he  was  given  the  nitrate  fruits  of  that  war  to 
spend.  This  wealth  Balmaceda  spent  with  great  free- 
dom. He  built  schools,  colleges,  railways,  breakwaters, 
ironclads,  and  great  public  buildings.  Chile,  which  up 
to  this  time  had  been  a  very  conservative  and  frugal 
nation,  at  once  blossomed  out  into  a  dazzling  —  al- 
though tiny  —  empire.  But  this  great  democrat 
transformed  Chile  morally  as  well  as  materially.  As 
in  the  case  of  most  families,  the  character  of  the  people 
began  to  decline  as  their  wealth  increased.  Although 
we  are  perhaps  perfectly  willing  to  be  harmed  in  this 
way,  yet  history  is  continually  proving  that  wealth 
takes  away  the  life  and  energy  of  a  people.  Wealth  per- 
mits the  erection  of  monuments,  but  does  not  provide 
health  and  happiness. 

In  1891  Chile  was  rent  by  a  most  peculiar  revolu- 
tion. Congress,  the  bankers,  and  the  merchants  re- 
volted against  President  Balmaceda  and  his  democratic 
ideas.  They  had  become  intoxicated  by  their  wealth, 
and  the  President  had  become  intoxicated  by  his  demo- 
cratic ideas.  These  he  put  forward  at  too  rapid  a  pace. 
For  a  short  while,  bloody  and  bitter  conflict  lasted,  but 
Congress  was  triumphant  at  last. 


CHILE  171 

It  was  during  this  revolution  that  the  United  States 
became  involved  with  Chile  in  such  a  way  that  a  war 
was  narrowly  averted.  The  people  of  Chile  were  bit- 
terly aroused  against  the  United  States  in  the  belief 
that  we  had  plaj'ed  a  considerable,  though  secret,  part 
in  the  conflict.  Sailors  from  our  fleet  were  attacked  in 
Valparaiso,  and  two  were  killed.  The  trouble  was 
settled  by  the  pa\nnent  by  Chile  of  seventy-five  thou- 
sand dollars,  but  the  feeling  against  North  Americans 
was  very  intense  there  for  years.  From  that  day  the 
presidents  of  Chile  have  been  largely  figureheads  and 
not  powerful  dictators,  as  are  the  presidents  of  Peru  and 
most  other  South  American  countries.  The  real  gov- 
ernment of  Chile  is  now  in  the  hands  of  Congress  and 
is  much  like  the  govermnent  of  England.  Authorities 
on  South  America  tell  me  that  Chile  now  has  the  most 
stable  government  of  any  of  the  twenty  Latin- Ameri- 
can ''repubhcs." 

I  italicize  the  word  "now,"  because  it  must  not  be 
forgotten  that  the  government  of  Chile  is  to-day  con- 
trolled by  the  bankers  and  large  landowners.  Although 
Chile  is  not  dominated  by  a  dictator  or  a  group  of  irre- 
sponsil)le  politicians,  it  is  not  governed  by  the  people, 
nor  for  the  people.  Of  course,  this  camiot  long  con- 
tinue. Either  gradually  or  suddenly,  there  surely  will 
be  a  decided  reaction  against  wealth,  landlords,  and  the 
present  oligarchy.  The  working  people  of  Chile,  who 
are  now  struggling  under  severe  uneconomic  taxation 
and  constantly  depreciating  currency,  will  some  day 
rebel.  Then  the  great  landoAvners  will  be  taxed  as 
they  should  be.  Then  the  great  estates  will  be  broken 
up  into  small  farms,  and  then  the  immigration  which 
Chile  so  nmch  needs  will  develop. 


172  THE  FUTURE  OF  SOUTH  AMERICA 

In  connection  with  immigration,  it  should  be  said  that 
the  Japanese  are  playing  a  considerable  part  in  the 
country.  They  have  sent  a  large  amount  of  capital 
there,  have  established  business  houses,  and  the  fish- 
eries of  the  country,  in  particular,  are  being  exploited 
by  the  Japanese. 

Hence,  although  Chile  to-day,  with  its  compact  and 
homogeneous  people,  unspoiled  by  foreign  blood,  is 
friendly  to  capital,  we  must  not  fool  ourselves  with  the 
idea  that  conditions  will  long  remain  the  same.  Those 
who  go  to  Chile  to  develop  mines,  irrigate  land,  or  build 
factories  for  the  Chilean  people  will  make  money  and 
be  treated  justly.  Those,  however,  who  expect  to  de- 
pend upon  either  their  exports  or  imports,  and  continue 
to  remain  "foreigners,"  may  fare  no  better  in  Chile 
than  in  other  South  American  countries.  Chile  to-day 
and  for  the  future  needs  much  capital.  Hence  the  future 
of  Chile  depends  largely  upon  its  treatment  of  capital. 
For  Chile  to  have  a  bright  future,  she  should  waive  her 
right  to  put  export  taxes  on  any  product  whatsoever 
which  can  be  secured  elsewhere. 

A  night  and  a  day  from  Arica  brings  the  traveler  to 
Antofagasta,  the  terminus  of  a  railway  from  Bolivia. 
Antofagasta  is  a  considerable  town  which,  in  spite  of  a 
bad  harbor,  has  a  large  commerce.  As  in  most  of  these 
South  American  towns,  the  streets  cross  at  right 
angles,  and  here  they  are  broad.  There  are  telegraph 
and  cable  connections,  gas  lights,  a  mule-car  line,  and 
fire  companies.  There  are  also  two  silver-smelting 
works,  one  of  which  is  the  largest  in  Chile,  and  nitrate 
works. 

Business  is  often  better  in  Antofagasta  than  in  any 
other  West  Coast  city.    This  is  probably  because  it  has 


CHILE  173 

more  diversified  interests.  Most  people  in  Chile  have 
sought  the  nitrate  mines  and  neglected  manufacturing 
and  agriculture.  For  this  reason,  I  believe  that  great 
opportunities  exist  in  Chile  to-day  for  manufacturing. 
Here  is  a  rich,  compact  little  country,  about  twice  as 
large  as  California,  with  only  three  million  people,  al- 
most without  industries  of  any  kind.  Instead  of  trying 
to  sell  goods  in  Chile,  I  would  be  tempted  to  go  down 
there  and  manufacture  them.  Almost  any  line  will  do. 
Ready-made  clothing  would  be  a  good  one  with  which 
to  start.  Underclothing  of  any  kind,  rugs,  soap,  and 
in  fact  an3i;hing  that  one  uses  or  should  use  ought  to 
be  good  also. 

A  stove  foundry  ought  to  pay.  Chile  has  coal,  but 
very  few  people  have  stoves.  The  older  generation 
were  trained  to  go  without  artificial  heat  in  winter,  and 
they  shiver  from  June  to  September.  The  younger  peo- 
ple, however,  are  now  insisting  on  having  more  com- 
forts, and  so  the  demand  for  heating  appliances  is 
increasing. 

Articles  difficult  to  ship  from  the  United  States  and 
Europe  should  also  be  profitable  to  manufacture  in 
Chile.  I  have  in  mind  furniture  which  is  too  bulky  to 
ship.  Chile  has  beautiful  woods  of  all  kinds,  j'ct  much 
of  their  furniture  is  made  in  Germany.  Another  sug- 
gestion in  this  line  is  glass. 

DjTiamite,  powder,  and  other  explosives  should  be 
manufactured  in  Chile.  Here  is  the  home  and  source 
of  the  world's  nitrate,  the  basis  of  most  explosives,  and 
among  the  mining  camps  of  South  America  there  is  a 
great  market  for  explosives.  Yet  to-day  the  nitrate 
is  taken  from  here  to  America  and  Europe,  where;  it  is 
made  into  dynamite,  which,  at  great  risk,  is  shii)ped 


174  THE  FUTURE  OF  SOUTH  AMERICA 

back  again  to  Chile,  Bolivia,  and  Peru.  It  seems  as  if 
some  enterprising  Yankee  could  easily  become  the  "Du 
Pont"  of  South  America. 

Of  course  it  would  take  time  and  capital  to  start  all 
these  things,  and  Chile  at  present  is  no  poor  man's 
country.  Don't  go  to  Chile  unless  you  have  capital. 
During  a  single  day  I  have  been  stopped  on  the  street 
by  three  stranded  United  States  citizens  who  were  beg- 
ging for  funds  by  which  to  return  to  "God's  country." 

The  only  way  to  find  the  opportunities  in  Chile  is  to 
go  there  and  look  for  them.  It  is  impossible  to  get  accu- 
rate information  in  any  other  manner.  The  difficulties 
are  outlined  in  the  following  interview  with  one  of  my 
friends  in  Antofagasta: 

"  You  North  Americans  are  the  most  gullible  people 
that  ever  came  down  the  pike!  You  come  down  here 
to  study  trade  opportunities.  You  bring  letters  of  in- 
troduction from  your  big  city  banks  to  their  corre- 
spondents here.  These  correspondents  are  either  the 
English  or  German  banks.  You  fellows  take  a  taxi 
from  the  boat  to  the  banks,  courteously  present  your 
letters,  and  begin  to  inquire  of  your  worst  competitors 
regarding  the  trade  opportunities  in  South  America! 
These  Englishmen  and  Germans  are  estimable  people; 
they  give  you  cigars,  they  cash  your  checks;  they  even 
invite  you  for  an  automobile  ride;  but  they  do  not  tell 
you  the  truth  about  South  America. 

"The  English  and  Germans  have  never  liked  you. 
Now,  since  you  are  seeking  to  secure  their  customers, 
they  truly  hate  you.  You  feel  complimented  when  they 
take  you  to  the  '  English  Club '  for  luncheon  or  a  cup 
of  tea,  but  even  this  is  a  part  of  their  well-laid  plans  to 
misinform  you.    At  the  club  they  introduce  you  only  to 


CHILE  175 

the  chronic  kickers.  In  addition,  they  egg  them  on  so 
that  even  the}'  appear  at  their  very  worst. 

"As  a  result  of  this  misinformation,  you  conclude 
that  there  are  no  opportunities  on  the  West  Coast  of 
South  America.  Why  don't  j'ou  go  to  one  of  our  large 
native  banks  and  at  least  hear  the  other  side?  I'll  tell 
you  the  reason  —  it  is  because  you  caimot  speak  Span- 
ish and  must  depend  upon  what  your  foreign  competi- 
tors tell  you." 

Certainly  opportunities  do  exist  and  careful  investi- 
gation will  find  them. 

Before  passing  to  another  subject,  let  me  present  four 
reasons  given  to  me  why  Chile  possesses  good  oppor- 
tunities for  manufacturing: 

1.  The  nature  of  its  territory,  which  permits  of  easy 
access  to  the  sea  from  any  of  its  centers,  and  the  link- 
ing up  of  the  latter  liy  the  Longitudinal  Railway,  which 
will  shortly  be  completed,  and  which  will  unite  the  ex- 
treme north  with  the  part  farthest  south,  of  its  terri- 
tory, excluding  the  insular  region. 

2.  Its  immense  deposits  of  coal,  copper,  iron,  sul- 
phur, and  nitrate. 

3.  The  great  abundance  of  hydraulic  power  furnished 
by  numerous  rivers,  having  their  sources  in  the  Andes. 

4.  The  efficient  protection  afforded  by  the  States  to 
newly  established  industries,  and  the  protection  the 
State  also  grants  to  undertakings  introducing  foreign 
capital  into  the  country. 

As  nitrates  are  now  Chile's  chief  export,  a  word  about 
the  industry  may  be  of  interest.  The  nitrates  are  here 
because  it  never  rains.  If  it  did  the  mineral  would 
have  been  washed  out  long  ago.  These  nitrate  lands 
are  barren  desert,  ^vithout  a  blade  of  grass  or  a  shrub. 


176  THE  FUTURE  OF  SOUTH  AMERICA 

The  region  containing  them  is  a  tract  of  land  of  about 
two  hundred  and  fifty  thousand  acres,  with  an  average 
width  of  two  and  a  half  miles,  extending  between  the 
Coast  Range  and  the  Andes.  It  is  wonderful  that  here 
is  a  whole  wide  region  absolutely  unable  to  support 
human  life,  and  yet  alive  with  a  busy  population.  All 
supplies,  including  water,  have  to  be  brought  to  the 
place. 

The  deposits  are  often  found  under  layers  of  earth  of 
varying  depth,  though  sometimes  they  are  on  the  sur- 
face. They  are  not  continuous,  but  seem  to  occur  in 
spots.  The  raw  .material,  called  "caliche,"  contains 
usually  from  twenty-five  to  sixty-five  per  cent,  of  nitrate 
of  soda.  After  the  rock  is  broken  up,  it  is  cooked  in 
tanks  from  eight  to  twelve  hours,  the  sand  and  refuse 
settling  to  the  bottom.  The  liquid,  which  is  called 
"calso,"  is  run  off  into  vats  and  is  then  allowed  to 
evaporate  or  crystallize.  These  crystals,  when  treated 
and  ready  for  export,  contain  about  fifteen  per  cent,  of 
nitrogen  and  thirty-five  per  cent,  of  sodium. 

The  amount  of  production  is  regulated  by  a  syndi- 
cate, according  to  the  needs  of  the  world.  It  is  inter- 
esting to  visit  these  establishments,  called  "  officinas," 
but  most  persons  find  it  gloomy  and  depressing.  The 
superintendents,  doctors,  and  other  officials  are  well 
paid  and  have  comfortable  quarters.  It  is  said  that  one 
hundred  million  dollars  of  British,  German,  and  other 
capital  is  invested  here.  Very  large  fortunes  have  been 
made.  Some  new  nitrate  lands  recently  discovered  are 
priced  as  high  as  two  thousand  dollars  an  acre. 

An  authority  says: 

"  The  nitrate  of  commerce  is  a  white,  cheese-like  sub- 
stance, from  which  the  highest  grade  gunpowder  is 


CHILE  177 

made;  it  is  also  used  in  chemical  works  to  produce 
nitric  and  sulphuric  acid,  etc.,  but  the  bulk  of  it  is  used 
as  a  fertilizer,  doubling  or  tripling  the  harvest.  As  to 
its  origin,  there  are  various  theories,  but  none  is  gener- 
ally accepted.  A  by-product,  a  yellow  liquid,  which  in 
its  preparation  is  dra^^^l  off  from  the  nitrate  mto  a  cru- 
cible, is  then  chemically  treated,  poured  into  smaller 
pans,  and  on  cooling  leaves  on  the  dish  a  blue  crystal, 
the  iodine  of  commerce,  which  costs  as  much  per  ounce 
as  saltpeter  per  hundred  pounds.  The  casks  in  which 
it  is  placed  are  covered  with  green  hides  which  shrink 
and  keep  out  the  moisture.  Worth  from  seven  to  eight 
hundred  dollars  a  cask,  the  iodine  is  shipped  in  the 
treasure  vaults  with  bullion.  About  forty  per  cent,  of 
the  nitrate  goes  to  Germany,  thirty  per  cent,  to  the 
United  States,  twenty  per  cent,  to  France,  and  the  rest 
to  Great  Britain  and  Belgium." 

Most  estimates  seem  to  agree  that  the  nitrate  fields 
may  last  for  at  least  one  hundred  and  fifty  years.  The 
export  duty  or  royalty  levied  by  the  Chilean  Govern- 
ment gives  a  large  annual  revenue,  and  is  indeed  the 
financial  mainstay  of  the  republic,  enabling  direct 
taxation  to  be  fixed  at  a  low  figure.  However,  it  is  a 
question  whether  Chile  would  not  be  better  off  in  the 
long  run  without  these  nitrate  fields,  which  Peru 
claims  Chile  stole  from  her.  For  they  are  cultivated 
to  the  neglect  of  agriculture  and  manufacturing.  When 
Peru  owned  them,  they  proved  to  be  the  source  of  more 
evil  than  good,  because  they  brought  such  large  sums 
into  the  treasury  that  military  adventurers  wanted  a 
share,  and  thus  revolutions  were  made  more  frequent. 
It  is,  of  course,  claimed  that  no  such  thing  need  be 
feared  in  Chile.     However,  as  the  nitrates  are  part  of 


178  THE   FUTURE   OF   SOUTH  AMERICA 

the  capital  of  the  country,  which  will  some  day  be  ex- 
hausted, it  would  certainly  be  wise  for  Chile  to  expend 
at  least  the  greater  part  of  the  revenue  from  them  in 
creating  other  industries. 

After  sailing  for  eighteen  hundred  miles  along  a 
barren,  desert  coast,  with  only  an  occasional  green  spot, 
like  Arica,  it  is  good  indeed  to  approach  the  next  zone 
of  Chile,  and  the  port  of  Valparaiso,  rightly  named 
the  "Vale  of  Paradise."  This  largest  and  busiest  port 
on  the  Pacific  coast  of  South  America  has  no  natural 
harbor,  and  storms  make  landing  difficult,  but  a  break- 
water which  will  remove  most  of  the  danger  is  in  proc- 
ess of  construction.  This  harbor  is  a  very  busy  place, 
being  next  to  San  Francisco  in  importance  among  Amer- 
ican Pacific  coast  ports.  Valparaiso,  with  a  population 
of  two  hundred  thousand,  is  the  wholesale  center  of 
Chile.  Santiago  claims  two  hundred  thousand,  and 
is  the  great  retail  center.  There  are  about  twenty 
citizens  of  the  United  States  in  Valparaiso  and  about 
two  hundred  in  Santiago.  There  are  probably  in  the 
whole  of  Chile  not  more  than  six  hundred  men  from 
the  United  States. 

The  substantial  business  portion  of  Valparaiso  is  on 
a  narrow  strip  of  shore  between  the  sea  and  the  hills, 
varying  in  width  from  two  blocks  to  half  a  mile,  and 
the  houses  look  as  if  they  were  climbing  the  hills! 
Many  of  the  business  buildings  are  two  or  three  stories 
high,  and  it  is  hard  to  believe  that  the  city  was  almost 
destroyed  by  earthquake  and  fire  in  1906,  the  same 
year  as  the  San  Francisco  disaster.  Earthquakes  are 
frequent  but  slight,  a  big  one  not  being  expected  oftener 
than  once  in  fifty  years.  The  city  has  a  frontage  along 
the  bay  of  four  and  a  half  miles,  and  the  streets  in  the 


CHILE  179 

level  section  are  comparatively  straight.  The  nineteen 
hills  upon  which  the  rest  of  the  city  is  built  arc  reached 
by  rambling  and  winding  lanes,  by  stairways,  and  by 
steam  elevators  and  cable  cars.  The  lighting  is  by  gas 
and  electricity,  the  water  comes  from  two  reservoirs 
in  the  mountains,  and  there  are  double-decked  electric 
cars  with  women  conductors.  It  appears  that  in  the  war 
of  1879-1881  so  many  young  men  joined  the  army  that 
women  entered  this  service.  As  they  proved  to  be  sat- 
isfactory, they  were  retained,  though  not  to  the  exclu- 
sion of  the  men.  They  are  not  giddy  3'oung  girls,  but 
are  evidently  of  the  working  classes,  of  rather  stolid 
appearance,  and  very  intent  upon  their  duties.  They 
wear  a  dark  blue  uniform  with  white  aprons,  and  collect 
fares  from  the  upper  story  of  the  car  and  swing  along 
the  sides  in  quite  a  manly  fashion,  though  somewhat 
hampered  by  their  full  skirts.  It  is  pleasanter  riding 
on  the  top  of  these  cars;  but  as  the  fare  is  only  half, 
the  upper  classes  never  ride  there  except  in  the  evening, 
when  they  may  not  be  recognized  from  the  street. 

The  flower  and  fruit  markets  rival  those  of  California, 
and  the  hillsides  are  covered  with  the  yellow  California 
P^^PPy-  A  few  miles  north  is  the  pretty  residential  sec- 
tion called  Vina  del  Mar,  where  there  are  race  courses 
and  polo  grounds.  Many  heads  of  commercial  houses 
have  their  homes  here,  including  English  and  Germans, 
as  well  as  Chileans,  who  in  many  cases  are  descended 
from  Europeans.  Some  of  these  British  business  men 
will  tell  you  that  the  young  men  who  come  from  Eng- 
land are  not,  as  a  rule,  equal  to  those  of  thirty  years 
ago,  nor  indeed  equal  to  the  young  Germans  who  come 
out.  They  care  less  for  their  work,  arc  more  interested 
in  sports  than  in  any  pursuit  needing  mental  exertion, 


180  THE  FUTURE  OF  SOUTH  AMERICA 

and  are  less  willing  than  the  Germans  to  spend  their 
evenings  in  the  study  of  the  language  and  business 
conditions  of  the  country.  Whether  this  is  true  or  not, 
it  is  certainly  said  in  many  foreign  ports  of  the  young 
men  who  come  to  take  the  places  of  their  elders.  This, 
however,  should  give  the  young  men  from  the  United 
States  an  additional  advantage. 

Valparaiso,  as  I  have  said,  is  the  great  wholesale 
market  of  Chile.  Here  are  located  the  home  offices  of 
the  importing  houses  that  send  their  traveling  men  up 
and  down  the  coast.    One  of  these  men  has  said : 

"Valparaiso  buys  and  sells  almost  all  there  is  to  buy 
and  sell.  I  do  not  believe  I  would  except  even  snow 
plows.  My  knowledge  of  the  entire  commercial  world 
may  not  be  big  enough  to  make  me  an  authority  on  the 
matter,  but  I  would  not  hesitate  to  bet  on  that  state- 
ment. Chile  needs  much  of  what  is  used  in  the  tropics 
over  her  northern  areas;  over  her  southern  territories 
and  Tierra  del  Fuego  she  needs  much  of  what  is  used  in 
cold  countries;  and  of  course  she  consumes  everything 
needed  in  the  temperate  zone,  because  there  the  bulk 
of  her  population  lives.  Valparaiso  keeps  a  finger  on 
the  pulse  of  customers  throughout  this  diversified  re- 
gion, and  loses  no  chance  to  supply  what  may  be 
needed.  Yes,  indeed,  the  man  who  knows  how  can 
sell  practically  everything  in  Valparaiso  or  some  part 
of  Chile." 

Regarding  the  reason  why  Europeans  have  been  so 
great  a  factor  in  the  development  of  the  South  American 
countries,  a  writer  who  is  also  a  successful  commercial 
traveler  in  all  the  Americas  has  this  to  say: 

"As  the  whole  country  grew  and  a  foreign  trade  be- 
came more  necessary,  it  was  Europe  that  first  and 


CHILE  181 

quickest  supplied  the  wants  of  the  people,  taking  their 
products  when  they  were  sent  abroad.  From  Europe  the 
people  came,  as  they  came  to  the  United  States,  immi- 
grants willing  to  undertake  new  work.  On  the  West 
Coast,  only  Chile  had  a  noticeable  immigration,  but 
European  capital  was  glad  to  provide  the  strength 
where  native  arms  had  the  ambition  to  undertake  ma- 
terial improvements.  Thus  the  feeling  that  Europe 
was  a  friendly  neighbor  grew  by  an  uninterrupted  in- 
tercourse after  independence  was  declared.  The  United 
States,  on  the  other  hand,  removed  as  it  was  in  a  geo- 
graphical sense,  and  failing  to  keep  up  a  foreign  com- 
merce while  its  own  interior  resources  were  being  so 
marvelously  developed,  fell  away  from  an  intimacy 
established  in  earlier  days." 

Thus  there  is  in  South  America  a  close  affinity  to  all 
European  standards.  The  people  do  not  know  North 
Americans.  They  are  willing  to  welcome  any  Yankee 
who  comes  to  them  with  an  honest  and  open  mind,  but 
he  must  prove  his  purpose  to  be  sincere.  Europe  is 
already  in  Chile.  The  United  States  had  little  to  do 
with  the  commercial  prosperity  of  Latin  America. 
Hence  the  markets  of  South  America,  however  vast 
their  consimiing  power,  can  be  reached  only  by  an 
understanding  that  Europe  is  a  great  competitor,  and 
that  manufacturers  in  the  United  States  must  meet 
European  standards  if  they  are  to  obtain  the  success 
in  South  America  for  which  they  hope.  It  is  the  fail- 
ure to  grasp  conditions  of  this  nature  that  discourages 
some  commercial  men  when  entering  the  field  for  the 
first  time. 

One  trouble  with  men  from  the  United  States  is  that 
they  are  in  too  much  of  a  hurry.    We  must  respect  the 


182  THE  FUTURE  OP  SOUTH  AMERICA 

"manana"  (to-morrow),  and  get  acquainted  with  the 
people  and  their  customs  before  attempting  to  do 
business. 

A  merchant  in  Santiago  criticised  our  salesmen  as 
follows : 

"The  salesmen  whom  your  manufacturers  are  con- 
tinually sending  down  here  are  in  too  great  a  hurry. 
They  visit  three  or  four  of  our  principal  cities  and  then 
fly  over  the  Andes  from  Santiago  to  Buenos  Aires. 
Before  your  countrymen  can  hope  to  secure  trade  down 
here,  they  should  study  South  American  geography. 
Our  most  rapidly  growing  cities  your  salesmen  never  go 
to  because  parlor  cars  do  not  run  there.  The  English 
and  German  salesmen  do  not  wait  for  parlor  cars  or 
good  hotels.  They  not  only  visit  these  growing  south- 
ern towns,  but  they  remain  long  enough  to  learn  the 
people  and  secure  their  friendship.  You  North  Ameri- 
cans think  that  the  only  factors  to  secure  trade  are 
price  and  quality.  This  idea  is  a  great  mistake  when 
applied  to  South  America.  Friendship  and  credit  we 
consider  more  than  price  and  quality.  We  also  value 
courtesy  very  highly. 

"Another  trouble  with  salesmen  from  the  United 
States  is  that  they  get  homesick.  Our  young  people 
want  social  life,  and  the  best  thing  for  your  salesmen 
to  do  is  to  get  a  card  to  a  club,  and  so  be  entitled  to  meet 
the  better  class  of  residents.  These  will  always  be 
found  gracious  and  friendly  to  a  stranger  approaching 
them  in  the  right  way.  One  thing  more  —  if  married, 
have  your  salesmen  take  their  wives  with  them." 

Santiago,  named  by  Valdivia  for  the  patron  saint  of 
Spain,  is  about  sixty  miles  from  Valparaiso.  I  believe 
it  has  the  finest  site  in  South  America,  excepting  perhaps 


CHILE  183 

that  of  Rio  de  Janeiro.  "WTien  Valdivia  came  down  to 
this  region  to  complete  the  conquest  of  this  southern 
part  of  the  Empire  of  the  Incas,  he  chose  a  great  rock 
rising  out  of  the  plain  on  the  banks  of  a  mountain  tor- 
rent, and  here  he  built  a  fort.  Later  he  was  for  a  long 
time  besieged  here  by  the  Inchans.  After  he  had  left 
the  region,  the  fort  still  remained  and  became  the  center 
of  the  city  which  gradually  grew  up  beneath  it.  It  is 
now  the  pleasure  ground  of  Santiago,  laid  out  as  a  park 
with  many  trees,  shrubs,  and  flowers,  and  is  called  El 
Ccrro  Santa  Lucia. 

There  are  in  Santiago  many  beautiful  public  build- 
ings, and  the  Municipal  Theater  is  said  to  surpass  any- 
thing of  the  kind  in  the  United  States,  with  its  elegantly 
furnished  boxes,  large  fo3''er  and  refreshment  room,  and 
seats  for  an  audience  of  four  thousand.  On  the  top  of 
Cerro  Cristobal,  nine  hundred  feet  high,  is  an  obser- 
vatorj',  which  is  a  branch  of  the  famous  Lick  Observa- 
tory of  California.  The  churches,  schools,  colleges,  and 
museums  are  also  of  interest.  The  climate  is  temperate ; 
the  summers  not  very  hot,  though  extremely  dusty,  and 
the  winters  very  mild,  though  rather  uncomfortable  to 
one  used  to  artificial  heat.  Until  very  lately,  sanitary 
measures  have  been  neglected,  so  that  epidemics  were 
frequent,  but  as  in  so  many  of  these  West  Coast  cities, 
the  officials  are  now  waking  up  to  a  realization  of  the 
need  of  sanitation,  and  a  beginning  has  been  made  in  the 
installation  of  an  adequate  system  of  sewerage  in  both 
Santiago  and  Valparaiso.  I  understand  also  that  the 
water  supply  of  Santiago  is  good,  and  of  Valparaiso 
fair. 

In  Santiago,  the  drinking  water  is  brought  to  the  city 
from  the  hills,  a  distance  of  eight  miles,  and  for  other 


184  THE   FUTURE   OF  SOUTH   AMERICA 

purposes  the  supply  is  obtained  from  the  two  rivers 
which  cross  it.  There  are  eleven  daily  papers;  the  city 
has  telephone  and  telegraph  connections,  electric 
cars,  and  electric  lights.  There  are  flour  mills,  foundries 
and  machine  shops,  tanneries,  and  some  factories,  in- 
cluding one  for  making  bicycles.  Since  the  completion 
of  the  Trans-Andean  Railway,  Santiago  has  direct 
communication  with  the  eastern  part  of  the  continent. 
In  this  connection,  it  is  interesting  to  note  that  the 
Pullman  cars  on  the  railroads  come  from  the  United 
States. 

I  find  that  citizens  of  the  United  States  are  not  very 
popular  in  Santiago,  This  is  partly  due  to  the  fact  that 
a  few  of  our  friends  who  have  gone  to  Chile  are  bank 
absconders  or  other  fugitives  from  justice;  partly  be- 
cause of  our  "Monroe  Doctrine";  and  partly  because 
the  banks,  newspapers,  and  steamship  lines,  from  which 
three  sources  Chileans  get  their  foreign  news,  are  con- 
trolled by  our  competitors,  the  English  and  Germans. 
There  is  no  doubt  that  our  present  administration  at 
Washington  has  done  much  to  heal  the  wounds.  But 
our  foreign  policy  has  at  times  nearly  started  a  dem- 
onstration against  our  few  residents  in  Santiago  — 
much  to  the  secret  delight  of  the  English,  French,  and 
German  colonies  in  the  city. 

In  connection  with  this  matter  of  the  press,  let  me 
quote  the  following  remarks  of  one  of  my  South  Ameri- 
can friends,  which  explain  the  situation  fully: 

''You  citizens  of  North  America  show  great  stupidity 
in  permitting  the  Europeans  to  control  the  press  of 
South  America.  Practically  all  our  leading  journals  are 
directly  or  indirectly  controlled  by  English  or  European 
capital.  Even  those  of  us  natives  who  are  trying  to  treat 


CHILE  185 

the  United  States  fairly  are  handicapped  by  the  news 
service.  Apparently,  your  United  States  press  has 
some  arrangement  with  the  European  news  agencies 
that  they  —  the  Associated  Press  —  shall  keep  out  of 
South  America.  This  means  that  much  of  the  United 
States  news  which  we  get  is  doctored  in  Europe  to  ap- 
pear unfavorable ;  while  the  European  news  is  doctored 
to  appear  favorable.  It  certain!}'  is  very  stupid  of  you 
people  not  to  insist  that  we  have  more  direct  news 
service  from  your  country.  Why,  even  the  guide- 
books on  the  United  States  which  we  read  have  been 
written  and  published  —  not  by  you  people,  but  by 
your  enemies  and  competitors." 

There  are  certain  striking  contradictions  and  com- 
pensations in  the  financial  and  physical  conditions  of 
Chile  which  it  is  well  to  consider  when  speaking  of  her 
resources.  The  most  remarkable  of  these  contradic- 
tions is  that  from  the  barren,  rainless,  and  apparently 
worthless  provinces  of  the  north  is  obtained  an  export 
valued  at  nearly  forty-three  and  a  half  million  dollars 
annually  —  a  sum  which  represents  two  thirds  of  the 
total  exports  of  the  republic.  This  nitrate  product  from 
the  most  unfertile  region  of  the  world  is,  in  itself,  the 
direct  cause  of  increased  fertility  in  every  land  to 
which  it  is  exported.  In  addition  to  this,  the  high 
wages  offered  to  those  engaged  in  this  industry  have 
drawn  from  the  agricultural  districts  so  large  a  propor- 
tion of  laborers  that  agriculture  has  been  seriously 
crippled.  Hence,  less  than  one  fourth  of  the  arable  land 
is  now  occupied.  As  a  consequence,  imports  of  food 
into  Chile  each  year  are  valued  at  nearly  six  million 
dollars,  or  about  eleven  per  cent,  of  the  total  imports 
into  the  country. 


186  THE  FUTURE  OF  SOUTH  AMERICA 

Should  the  nitrate  deposits  become  exhausted,  the 
labor  would  naturally  be  diverted  into  agriculture,  and 
the  resultant  growth  of  foodstuffs  might  compensate, 
in  a  measure  at  least,  for  the  loss.  Here,  then,  would 
seem  to  be  an  opportunity  for  some  one  with  capital 
and  a  knowledge  of  intensive  farming  to  go  into  that 
business  and  help  supply  Chile  with  some  of  the  food 
she  now  has  to  import.  In  my  talks  with  government 
officials,  I  have  strongly  advised  the  development  of 
agriculture.  Such  work  should  be  done  at  once,  so  that 
the  republic  would  be  in  a  position  to  use  her  other 
resources  if  deprived  of  what  is  her  main  source  of 
income  at  present.  The  known  fertility  of  a  large  sec- 
tion of  Chilean  territory,  the  many  other  minerals 
which  are  already  worked  and  which  are  probably  to 
be  discovered  (only  recently  valuable  deposits  of  tin 
have  been  found,  and  near  Punta  Arenas  are  known 
to  be  oil  fields),  the  wealth  of  the  great  forests  of  the 
south,  and  the  steady  growth  of  manufacturing  in- 
terests, constantly  widening  in  their  scope,  promise 
more  and  more  wealth  for  Chile.  Why,  therefore, 
should  not  foreign  capital,  including  that  of  the  United 
States,  come  in  for  a  share? 

One  product  not  often  thought  of  in  connection  with 
South  American  resources  is  fur.  The  valuable  chin- 
chilla is  found  in  the  mountainous  and  barren  regions 
of  both  Peru  and  Chile,  the  export  of  these  alone 
bringing  to  the  latter  country  a  few  years  ago  in  one 
year  three  hundred  and  forty  thousand  dollars.  In  the 
extreme  south  are  other  fur-bearing  animals,  including 
seals,  whose  fur  is  different  from  that  of  the  northern 
variety,  but  still  valuable. 

Cattle  raising  is  carried  on  to  a  considerable  extent, 


CHILE  187 

and  sheep  are  a  valuable  asset,  especially  in  the  region 
of  Puntas  Arenas  on  the  Strait  of  Magellan.  Of  this 
section,  it  is  said,  "It  pays  to  keep  grazing  stationi* 
here,  since  sheep,  forced  either  to  grow  thick  fleece  or 
die  of  cold,  tend  to  the  former  alternative."  To-day, 
Chile  is  importing  goat  and  sheep  skins,  though  having 
the  greatest  area  of  unused  pasture  land  in  the  Ameri- 
cas. There  are  valuable  oyster  beds  at  the  harbor  of 
Ancud.  Apiculture  is  carried  on  to  some  extent.  The 
Italian  bee  is  perfectly  adaptable  to  the  requirements 
of  the  country,  and  there  are  one  hundred  and  fifty 
thousand  beehives  in  Chile.  Conditions  under  which 
this  branch  of  industry  may  be  worked  are  excellent, 
but  as  yet  few  persons  devote  themselves  to  it.  As 
there  is  a  widespread  demand  for  honey  and  wax 
abroad,  the  total  production  finds  an  easy  outlet. 

All  kinds  of  fruit  may  be  raised  in  Chile,  and  there 
are  some  vinej'ards  which  export  wine.  The  forest  land 
in  Chile  is  estimated  to  cover  an  area  of  seventy-five 
thousand  square  miles,  or  nearly  twenty-six  per  cent, 
of  the  total  area  of  the  country.  There  is  an  abundance 
of  wood  suitable  for  building  purposes  and  the  making 
of  furniture,  and  also  species  adapted  for  medicinal 
uses.  Mention  may  be  made  of  quillai  (Quillaja  sapo- 
naria),  the  bark  of  which,  under  the  name  of  "Panama 
Wood,"  replaces  soap  in  the  washing  of  silk,  fine  linen, 
etc.  Elm  and  other  trees  furnish  a  bark  rich  in  tannin, 
which  is  much  in  demand  in  the  tanneries.  The  achi- 
lean  palm  supplies  a  delicious  syrup.  According  to 
authorities  on  Chilean  timber,  there  are  over  one  hun- 
dred different  species  in  Chile.  The  Chilean  laurel, 
examined  in  Norway,  was  found  to  yield  a  higher  qual- 
ity of  cellulose  or  woody  fiber  than  what  is  obtained  in 


188  THE  FUTURE  OF  SOUTH  AMERICA 

that  country.    Only  capital  is  needed  to  cut  and  pre- 
pare this  timber. 

Chilean  railways  belong  partly  to  the  State  and  partly 
to  private  concerns.  There  are  about  seven  thousand 
miles  of  railways  in  Chile  open  to  traffic,  and  thirty-five 
hundred  miles  in  course  of  construction.  The  State 
owns  over  half.  During  an  average  year  the  State  rail- 
ways carry  about  twelve  million  five  hundred  thou- 
sand passengers  and  five  million  tons  of  cargo,  which 
render  a  gross  income  of  about  twenty-eight  million 
dollars.  The  private  railways  carry  annually  about 
one  million  eight  hundred  thousand  passengers,  and 
five  million  tons  of  cargo,  rendering  gross  receipts 
amounting  to  about  thirteen  milhon  dollars. 

The  Chilean  Government  is  projecting  the  electrifi- 
cation of  the  State  railways,  and  to  this  end  a  bill  has 
been  presented  to  Congress  for  the  electrification  of  the 
first  section  of  the  railway  which  unites  Santiago,  the 
capital,  with  Valparaiso.  Motive  power  supplied  by 
the  river  Aconcagua  would  be  utilized  for  the  purpose. 
Should  the  result  of  the  electrification  of  the  first  sec- 
tion prove  satisfactory,  the  remainder  of  the  central  or 
main  line  will  be  proceeded  with. 

Whether  or  not  any  new  road  would  pay  for  many 
years,  I  do  not  know;  but  apparently  the  government 
railways  of  Chile  are  now  frightfully  operated.  It  is 
said  that  more  men  are  employed  per  mile  on  Chilean 
railways  than  anywhere  else  in  the  world.  Every  poli- 
tician strives  to  have  all  his  constituents  employed  on 
the  railways !  They  are  now  being  run  at  a  large  annual 
loss,  although  a  Belgian  syndicate  has  offered  to  pay  all 
expenses  and  a  rental  to  boot  for  the  privilege  of  oper- 
ating these  lines.     May  this  be  an  example  to  the 


CHILE  189 

United  States,  which  enjoys  the  best  operated  railways 
in  the  world. 

Farther  south  in  Chile,  there  is  a  decided  change  in 
the  scenery.  As  the  rainfall  steadily  increases  (from 
fifteen  inches  annually  in  Santiago  to  over  a  hundred 
iuches  four  hundred  miles  farther  south),  the  streams 
are  fuller,  there  is  more  verdure,  higher  trees,  and  richer 
grass.  The  mountains  are  lower,  Ijut  the  snow  line  also 
falls.  The  air  is  soft  and  pure,  and,  as  one  ^^Titer  puts 
it,  "As  compared  with  the  desert  regions  of  northern 
Chile,  the  difference  is  as  great  as  that  between  the 
verdure  of  Ireland  and  the  sterility  of  the  Sahara." 

One  passes  several  ports  in  going  from  Valparaiso  to 
Lota.  This  place  owes  its  importance  to  the  coal  and 
copper  mines  in  the  vicinity,  which  give  employment 
to  more  than  half  the  population  of  the  district.  The 
workings  of  these  mines  extend  far  under  the  deep  sea. 
The  same  company  operates  also  two  copper  smelters, 
a  brickyard,  tile  factory,  and  glass  bottle  factory.  On 
an  eminence  behind  the  towm  there  is  a  wonderful 
botanical  garden,  which  contains  a  large  variety  of 
trees,  shi-ubs,  and  plants,  both  of  temperate  and  tropical 
regions.  In  contrast  u4th  the  garden  on  the  height  are 
the  mines,  where  are  streets,  shops,  restaurants,  black- 
smiths' shops,  stables,  etc.,  nearly  a  quarter  of  a  mile 
below  the  surface. 

The  vegetation  and  general  appearance  of  this  south 
Chilean  coast  are  strangely  unlike  those  of  the  Atlan- 
tic coast  of  either  North  America  or  Europe,  and  arc 
more  like  that  of  California.  The  shore  is  rocky  in 
some  places,  and  on  others  there  are  sandy  beaches 
backed  by  thickets  or  grassy  flats.  Farther  inland  there 
are  rich  pasture  lands,  easily  made  fertile,  and  wonder- 


190  THE  FUTURE  OF  SOUTH  AMERICA 

ful  forests  containing  many  kinds  of  trees  valuable  for 
manufacturing.  Few  people  live  in  this  vast  region,  so 
well  adapted  for  supporting  human  life.  The  Indians 
live  in  grass  huts  or  frame  houses,  and  till  the  soil  or 
raise  cattle,  though  a  few  go  north  to  seek  work,  and  are 
considered  excellent  laborers. 

It  is  said  that  comparatively  few  immigrants  enter 
this  part  of  Chile,  and  there  seems  to  be  much  land  not 
yet  occupied.  It  would  appeal,  I  should  think,  to  a 
young  man  who  loves  country  life,  who  is  not  in  a  hurry 
to  be  rich,  and  who  can  make  himself  at  home  in  a  land 
whose  language  is  not  his  own.  Climate,  soil,  and 
scenery  are  all  exceptional,  and  one  famous  traveler 
goes  so  far  as  to  say,  ''  Of  all  the  parts  of  South  America 
that  we  visited,  southern  Chile  stands  out  to  me  as  the 
land  where  one  would  choose  to  make  a  home."  It  is 
not  so  inaccessible,  either,  as  one  would  at  first  think. 
The  railroad  comes  to  Osorno,  only  forty  hours  from 
Santiago,  passing  through  Temuco  and  Valdivia,  with 
a  spur  to  Conception  and  Lota,  farther  up  the  coast. 
Osorno  is  about  a  hundred  miles  from  the  series  of 
channels  beginning  at  Chiloe  Island,  and  extending  to 
the  Strait  of  Magellan,  seven  hundred  miles  south. 
The  Taytao  Peninsula  extends  out  and  breaks  the  con- 
tinuity of  this  channel  passage,  but  from  Chiloe  to  this 
point  there  are  over  a  thousand  islands,  said  to  be  really 
a  submerged  portion  of  the  Andes.  Some  of  these  rise  to 
a  height  of  two  thousand  feet,  and  are  thickly  wooded, 
as  is  also  the  opposite  shorS  of  the  continent,  to  a  height 
of  fourteen  or  fifteen  hundred  feet,  above  which  ap- 
pears only  the  rough  rock  formation.  The  woods 
become  less  dense  as  the  Strait  of  Magellan  is 
approached. 


CHILE  191 

There  is  not  much  of  mterest  south  of  Lota,  until 
Punta  Arenas,  on  the  Strait  of  Magelhin,  is  reached. 

There  is  no  reason  wh}'  our  manufacturers  should  not 
do  more  business  in  Chile.  I  do  not  mean  that  Chileans 
should  buy  more  goods,  but  that  they  should  buy  of 
us  goods  which  they  are  now  buying  from  Europe. 
United  States  manufacturers  should  sell  goods  which 
have  for  3'ears  been  sold  in  Chile  by  England,  France, 
and  Germany.  Moreover,  the  manufacturers  of  the 
United  States  can  do  this  when  they  will  cease  to  be  so 
pig-headed  and  independent.  All  that  is  needed  to  sell 
goods  in  Chile  is  a  willingness  to  select  styles,  colors, 
and  qualities  that  the  Chileans  prefer.  If  the  Chileans 
desire  a  cheap  and  flashy  class  of  goods,  why  not  give 
it  to  them?  If  goods  must  be  transported  on  mule 
back,  why  not  pack  them  so  that  they  can  be  carried 
safely?  If  it  is  the  Chilean  custom  to  do  business  in 
certain  ways,  why  not  meet  such  ways,  if  it  can  be  done 
without  loss?  Why  be  so  conceited  and  unaccom- 
modating? We  citizens  of  the  United  States  are  a  nar- 
row-minded people,  and  we  must  get  away  from  this 
provincialism  before  we  can  get  a  world  market  for 
our  goods. 

When  it  comes  to  investing  money  in  the  West  Coast 
countries  of  South  America,  I  advise  caution.  Many 
investments  are  absolutely  safe  and  yield  well.  Others, 
for  legal  and  various  other  reasons,  are  unsafe.  In 
Chile,  the  danger  is  from  taxation.  The  United  States 
knows  nothing  about  export  taxes.  We  do  not  have 
them;  Chile,  however,  lives  upon  export  taxes.  An 
American  company  develops  a  mine  in  Chile.  After 
it  gets  in  good  condition  and  becomes  a  money-maker, 
the  Chilean  Government  may  put  an  export  tax  on  all 


192  THE  FUTURE  OF  SOUTH  AMERICA 

ore  which  it  ships  out  of  the  country.  The  government 
has  a  theory  that  here  is  a  way  to  raise  a  tax  which  not 
only  must  be  paid  by  foreigners,  but  which  will  even 
lower  the  price  of  such  ore  in  Chile  to  Chileans.  Now 
these  export  and  other  taxes  which  may  at  any  time  be 
levied  are  reasons  why  American  capital  does  not  go 
more  to  Chile,  and  why  it  is  justified  in  not  going. 

In  short,  Chile  is  a  fine  country,  with  good  climate, 
resources,  and  people.  Chile  is  sure  to  become  a  good 
market  for  United  States  goods,  but  before  investing 
capital  in  Chile,  make  sure  that  you  are  exempt  from 
increased  taxes  for  a  certain  number  of  years,  or  else 
have  your  contracts  such  that  the  Chileans  themselves 
must  pay  any  increased  taxes  which  might  be  levied. 

Wliat  a  welcome  I  received  at  Antofagasta!  From 
the  people?  No.  My  welcome  was  from  the  ducks. 
What  the  correct  ornithological  name  for  them  is  I  do 
not  know.  Some  called  them  pelicans ;  others  said  they 
were  gulls;  but  my  httle  girl  called  them  ducks,  and 
this  name  was  good  enough  for  most  of  our  fellow 
passengers.  There  were  thousands  —  yes,  probably 
nine  hundred  thousand  —  of  these  birds.  I  never 
saw  such  a  sight  in  my  fife.  Most  of  them  rested  on 
the  water  while  the  others  were  flying  a  few  feet  above. 
Our  boats  did  not  seem  to  disturb  them.  They  would 
rise  from  the  water  only  as  a  school  of  hungry  sea  lions 
came  along.  Then  they  would  hover  about  six  feet 
above  the  sea  lions'  heads,  saucily  flying  along,  as  if  to 
say:  " Oh,  you  will  catch  me,  will  you?  Well,  you  can't 
fly,  old  fellow,  and  I  can." 

Then  one  of  them  would  drop  down  as  if  to  peck  at  a 
sea  lion's  nose.  The  latter  would  try  to  jump  up  and 
catch  the  bird,  but  owing  to  his  great  weight,  he  could 


CHILE  193 

get  his  head  only  a  couple  of  feet  above  the  water,  so 
he  would  drop  back  again.  Yet  there  are  so  many 
birds  that  once  in  two  or  three  days  a  lion  catches  one, 
and  is  rewarded  for  his  patient  waiting.  I  never  saw 
so  many  and  such  large  sea  lions  before.  It  was  actu- 
ally necessary  once  to  stop  our  large  launch  and  wait 
for  a  crowd  of  the  birds  and  hons  to  get  out  of  the  way. 
I  suppose  that  these  ducks,  or  gulls,  are  the  birds  to 
which  the  country  owes  its  vast  guano  deposits,  the 
forerunner  of  the  great  nitrate  industry  upon  which 
Chile  is  so  dependent. 

Upon  reaching  shore,  I  went  up  the  wharf  and  along 
a  narrow  street  where  men  were  carrying  great  baskets 
of  squashes,  melons,  and  other  farm  products.  I  was  on 
my  way  to  an  English  bank.  Good  United  States  money 
was  no  good  in  Antofagasta,  Chile.  Hence  I  needed  to 
get  some  "  good  "  Chilean  money.  Imagine  my  surprise 
when  for  ten  dollars  in  United  States  gold  I  received 
sbcty-four  dollars  in  Chilean  paper  money!  I  thereupon 
said  to  the  banker: 

"  From  what  I  have  seen  of  Chile  during  my  first  half 
hour  here,  I  should  say  you  were  long  on  ducks  and 
dollars.  Certainly  I  have  never  seen  either  so  plentiful 
anywhere  else  in  the  world." 

To  this  the  banker  replied: 

"No;  what  you  say  is  n't  true  even  in  jest;  but  if 
you  can  imagine  the  ducks  as  representing  the  nitrates, 
and  the  dollars  as  representing  our  credit,  it  is  true  that 
neither  are  in  much  demand  to-day.  The  market  for 
both  our  nitrates  and  our  money  has  so  greatly  les- 
sened that  the  nitrate  industry  is  worldng  only  a])out 
twenty  per  cent.,  and  the  dollar  is  worth  only  about 
fifteen  and  a  half  cents.     Furthermore,  you  can  say 


194  THE  FUTURE  OF  SOUTH  AMERICA 

that  the  future  of  Chile  depends  upon  finding  a  market 
for  her  'ducks'  (nitrates)  and  her  depreciated  dollars. 
In  other  words,  Chile  needs  customers  and  credit  —  cus- 
tomers for  her  nitrates  and  credit  in  order  to  secure 
capital." 

With  these  words,  I  was  introduced  to  Chile.  From 
Antofagasta  I  went  to  Valparaiso.  Here  again  I  was 
greeted  by  the  same  birds.  Although  the  first  vessel  to 
enter  the  port  of  Valparaiso  after  it  was  opened  to  the 
world  in  1811  was  the  frigate  Galloway  from  New  York, 
yet  the  ship  on  which  I  was  a  passenger  in  1915  was 
the  only  one  of  the  hundred  or  more  in  the  harbor  which 
carried  the  United  States  flag. 

Chile  does  need  customers  and  credit  —  customers 
for  her  nitrates  and  credit  in  order  to  develop  her  other 
industries.  For  both,  Chile  has  heretofore  depended 
upon  Europe.  England  and  Germany  have  thus  far 
taken  a  large  part  of  the  nitrates  and  furnished 
eighty  per  cent,  of  the  capital.  Of  course  the  Chileans 
should  save  more  themselves,  but  they  don't  and  won't. 
They  are  not  lazy  and  good-for-nothing,  like  the  natives 
in  certain  other  parts  of  South  America;  but  they  like 
the  good  things  of  life,  they  think  much  of  show,  and 
would  rather  give  a  mortgage  than  save  up  capital. 
There  is  much  formality  in  Santiago,  and  this  was 
strongly  brought  home  to  me  when  I  called  upon  the 
President  of  Chile,  Senor  Don  Ramon  Barros-Luco,  a 
fine,  dignified  gentleman,  nearly  eighty  years  old. 

Senor  Don  Ramon  Barros-Luco  was  born  of  one  of 
the  seventy  leading  families  of  Chile.  (Although  Chile 
is  called  a  "republic,"  it  is  ruled  by  an  aristocracy  of 
the  strictest  caste.)  Sons  of  these  families  take  the 
names  of  both  parents.     Senor  Don  Ramon  Barros- 


CHILE  195 

Luco  graduated  from  the  National  University  of  Chile 
as  a  lawj'er  in  1858,  was  elected  member  of  Congress 
from  Valparaiso  in  1861,  and  by  1872  became  Prime  Min- 
ister and  Minister  of  the  Treasurj'.  He  was  later  again 
elected  to  Congress  and  became  Speaker  of  the  House, 
after  which  he  was  promoted  to  the  Senate,  and  later 
appointed  Minister  to  France.  He  has  been  elected  to 
important  outside  oSices,  such  as  President  of  the  Agri- 
cultural Society  and  President  of  the  Society  for  De- 
veloping Home  Industries.  Hence,  not  only  has  he  had 
long  political  experience,  but  he  is  also  well  posted  re- 
garding the  economic  and  financial  condition  of  Chile, 
concerning  which  I  was  anxious  to  learn  authoritatively. 

After  much  formality,  I  finally  reached  the  beautiful 
state  reception  room  where  the  President  was  waiting. 
After  proper  introductions,  I  said: 

"Mr.  President,  as  you  know.  South  America  is  the 
fad  among  United  States  business  men  to-day.  They 
are  especially  interested  to  learn  of  Peru,  Chile,  Argen- 
tma,  and  Brazil.  I  want  you  to  tell  me  about  your 
countrj\" 

To  this  he  replied: 

"The  Republic  of  Chile,  with  a  population  of  four 
million,  forms  a  long  and  narrow  strip  of  land  along 
the  western  coast  of  South  America,  and  has  an  area 
equal  to  the  combined  areas  of  Germany,  Belgium,  Den- 
mark, Holland,  and  Switzerland.  As  regards  its  physi- 
cal aspect,  Chile  can  be  divided  into  four  perfectly 
outhned  zones,  viz.: 

"First  zone.  Desert.  This  zone,  extending  from  18° 
to  27°  south,  comprises  the  Atacama  Desert,  and  con- 
tains the  inexhaustible  nitrate  deposits.  As  there  is 
scarcely  any  rainfall  and  very  few  streams,  the  vegeta^ 


196  THE  FUTURE  OF  SOUTH  AMERICA 

tion  is  limited  to  certain  small  valleys,  where  are  found 
alligator  pears,  figs,  and  pomegranates,  and  where 
barely  sufficient  hay  is  raised  to  meet  local  needs. 

"Second  zone,  Mineral.  This  zone  extends  from  27° 
to  33°,  and  has  abundant  mineral  wealth,  including 
gold,  silver,  copper,  cobalt,  nickel,  lead,  iron,  and 
magnesium.  In  this  region  the  Andes  reach  their  high- 
est point.  Some  vegetation  is  encountered,  and  the 
vineyards  produce  fine  wine  and  raisins. 

"Third  zone,  Agricultural.  This  central  zone  lies 
between  33°  and  42°,  and  includes,  between  the  two 
mountain  ranges,  an  exceedingly  fertile  valley,  with 
streams  useful  for  na\agation  and  for  hydrauhc  power. 
In  this  valley  is  the  origin  of  the  largest  and  most 
sohd  fortunes  amassed  in  the  farming  industry.  All 
kinds  of  fruits,  extensive  forests,  many  minerals,  and 
rich  coal  mines  are  also  here. 

"Fourth  zone.  Insular  or  Island.  Between  42°  and 
46°,  the  Coast  Range  is  transformed  into  a  vast  archi- 
pelago, extending  all  along  the  coast  to  Cape  Horn. 
On  the  mainland  are  great  forests,  and  splendid  pasture 
land,  with  abundant  rains.  The  raising  of  cattle  has 
here  prospered  to  such  an  extent  that  it  is  now  in  a 
flourishing  condition. 

"On  account  of  its  many  latitudes,  Chile  has  a  cli- 
mate varied  and  unique,  but  of  invariable  mildness. 
It  is  hot  and  dry  in  the  north;  temperate  and  some- 
what rainy  in  winter  in  the  central  zone;  and  cold,  with 
plenty  of  rain,  in  the  south  or  insular  zone.  In  the  moun- 
tain region,  the  climate  is  dry  and  varies  in  accordance 
with  the  height." 

I  next  asked  the  President  regarding  the  assets  of 
Chile,  and  what  Chile  has  to  offer  to  foreign  capital. 


CHILE  197 

In  reply  he  asked  me  to  note  the  follov^nng  facts  from  a 
report  by  the  Commercial  Section  of  the  Chilean  Gov- 
ernment: 

Chile  is  the  only  country  which  produces  nitrate  in 
the  natural  state.  The  value  of  this  nitrate  amounts 
to  over  one  hundred  milhon  dollars  in  United  States 
gold  per  year,  of  which  the  government  receives  about 
twenty-five  per  cent,  in  export  taxes.  In  normal  times, 
the  industry  employ's  about  fifty  thousand  men.  Ru- 
mors have  at  times  gone  forth  that  these  nitrate 
deposits  will  soon  be  exhausted,  wliich  assertion  is 
absolutely  without  the  shghtest  foundation.  Thorough 
investigations  and  explorations  have  proved  that  the 
deposits  of  nitrate  existing  amount  to  5,408,204,000 
metrical  quintals  of  one  hundred  kilos  each,  or  a  suffi- 
cient quantity  of  exploitable  nitrate  to  last  for  a  period 
of  two  hundred  years  at  the  least.  Further,  it  has  been 
mathematically  calculated  that  there  is  still  an  exten- 
sion of  nitrate  deposits  to  be  examined  which  is  thirty- 
four  times  larger  than  the  area  already  examined.  The 
future  of  Cliilean  nitrate  is  assured,  in  spite  of  the  com- 
petition from  the  artificial  product,  because  the  present 
method  of  manufacture,  being  very  primitive,  is  sus- 
ceptible of  great  improvement. 

I  was  not  surprised  to  have  the  President  place  ni- 
trates as  the  most  important  of  all.  Statistics  show  that 
the  entire  prosperity  of  Chile  depends,  at  the  moment, 
on  the  nitrate  deposits.  They  furnish  employment  to 
labor,  trade  for  the  merchants,  and  cargoes  for  the 
ships.  They  pay  the  running  expenses  of  the  govern- 
ment. When  the  nitrate  industry  is  booming,  Chile  is 
l)rosperous;  when  this  is  stagnant,  Chile  is  at  a  stand- 
still. 


198  THE  FUTURE  OF  SOUTH  AMERICA 

As  I  have  already  indicated,  these  nitrate  mines  once 
belonged  to  Peru,  and  Chile  took  them  after  the  war 
of  1884.  Chile  thought  she  was  getting  a  great  prize, 
but  leading  men  of  Chile  admit  that  these  mines  have 
been  a  curse.  Before  they  were  taken  from  Peru,  the 
young  men  of  Chile  were  an  industrious  and  economi- 
cal body  of  people;  but  conditions  are  now  entirely 
changed.  The  people  have  had  a  taste  of  "easy  money." 
Every  one  now  wants  to  be  a  lawyer,  doctor,  or  poli- 
tician. The  soil  and  manufacturing  are  being  neglected. 
If  Chile  is  not  careful,  she  will  be  like  so  many  men  in 
the  United  States,  who  once  had  a  good  business,  but 
after  making  some  easy  money  in  the  stock  market, 
neglected  their  business,  and  finally  lost  everything. 

The  President  then  took  up  the  subject  of  other 
mines.     Said  he: 

"Mining  is  beyond  doubt  the  most  important 
branch  of  the  industrial  activities  of  the  country. 
Even  the  subsoil  contains  every  kind  of  mineral  known 
up  to  the  present  day.  These  rich  deposits  have  hardly 
been  scratched,  and  are  an  inexhaustible  source  of 
future  wealth  for  the  nations.  The  mineral  and  metal- 
lurgical production  represents  a  value  of  one  hundred 
and  twenty-five  million  dollars  a  year,  which  is  vastly 
superior  to  the  amount  derived  from  the  agricultural 
and  manufacturing  industries.  The  future  of  the  cop- 
per industry  is  of  great  importance  to  my  country.  In 
addition  to  the  mines  of  the  Braden  Copper  Company, 
the  Chilean  Exploration  Company  of  New  York  is  now 
opening  up  the  largest  low-grade  copper  mine  in  the 
world.  Here,  it  is  claimed,  copper  will  be  produced  for 
six  cents  a  pound.  Chile  may  some  day  be  the  greatest 
copper-producing  country  in  the  world. 


CHILE  199 

"With  regard  to  gold  and  silver  mining,  these  in- 
dustries cannot  now  be  said  to  be  in  a  flourishing  condi- 
tion. This  is  due  not  to  any  scarcity  of  ore  (there  are 
extensive  deposits),  but  to  the  fact  that  the  huge  ex- 
tensions which  at  one  time  made  the  business  a  very 
lucrative  one  have  yielded  up  all  the  ore  contained  in 
the  richest  laj'ers,  and  more  capital  is  needed  to  work  the 
mines  at  greater  depth.  Further  capital  and  modern 
machinery'  might  make  the  working  of  these  mines  very 
remunerative. 

"The  iron  industry  is  yet  in  its  infancy  and  will 
secure  a  prominent  place  in  the  world's  production,  as 
the  enormous  deposits  which  up  to  now  have  been  kept 
practically  intact  will  give  field  to  exploitation  on  a 
huge  scale.  Just  at  present,  the  only  important  mining 
establishment  is  *E1  Tofo'  in  Coquimbo.  This  is  an 
enormous  mineral  deposit  producing  sixty-eight  per 
cent,  iron  ore.  The  owners  have  signed  a  contract  with 
a  North  American  concern,  which  has  undertaken  to 
work  the  mines  and  supply  the  smelting  works  with  the 
quantity  of  ore  required,  the  rest  of  the  ore  being  ex- 
ported. There  are  numerous  similar  deposits  in  the 
north  of  Chile. 

"Coal  is  another  mineral  product  with  a  brilhant 
future.  The  quantity  mined  has  gradually  increased 
during  the  past  ten  years,  amounting  last  year  to  one 
million  five  hundred  thousand  tons.  As  the  demand  for 
coal  is  great,  this  increase  is  significant,  especially  if  we 
consider  that  the  production  of  the  country  is  insuffi- 
cient to  meet  the  country's  demands,  and  foreign  coal 
has  to  be  imported  to  make  up  the  deficiency.  We 
must  remember,  however,  that  the  pits  at  present  being 
worked  bear  a  very  small  relation  to  the  extent  and  im- 


200  THE  FUTURE  OF  SOUTH  AMERICA 

portance  of  the  coal  fields,  there  being  large  deposits 
waiting  development  and  much  ground  to  be  explored. 
The  carboniferous  region  is  found  within  the  borders  of 
the  Conception  and  Arauco  provinces.  Last  year  eight- 
een pits  were  in  operation,  employing  8,705  workmen. 

"The  borax  industry  of  Chile  is  also  of  great  impor- 
tance, and  we  supply  fifty  per  cent,  of  the  world's  con- 
sumption. This  is  in  spite  of  the  fact  that  only  the 
deposits  at  Ascatan  are  being  worked,  those  at  Chil- 
caya  being  kept  in  reserve.  Common  salt  is  yet  another 
of  the  abundant  products  of  Chile.  At  present  the  pro- 
duction is  limited  to  suppljdng  the  demands  of  the  local 
market,  which  in  1913  amounted  to  only  17,045  tons. 
Yet  the  Salar  Grande  de  Huanillos  or  Punts  de  Lobos 
salt  deposit  alone  would  be  quite  sufficient  to  supply  the 
world's  demand  for  many  years  to  come.  Its  surface 
is  seventy-five  thousand  acres,  with  a  sounded  depth  of 
ninety-nine  per  cent,  pure  salt.  On  the  basis  of  an 
annual  consumption  of  twenty-five  thousand  tons,  this 
bed  itself  would  be  ample  to  suffice  for  the  needs  of  the 
country  indefinitely. 

"There  are  also  sulphur  and  other  deposits  of  great 
value.  Tell  your  friends  in  the  United  States  that  our 
mining  laws  are  very  liberal,  and  that  our  Commercial 
Section  will  gladly  give  full  particulars  to  any  citizen 
of  the  United  States.  We  also  urge  all  to  write  us  or 
come  and  see  the  properties  for  themselves  before  in- 
vesting or  taking  the  word  of  others." 

When  I  compared  the  verdure  of  central  and  southern 
Chile  with  the  remainder  of  the  West  Coast,  it  seemed 
to  me  that  this  country  has  great  agricultural  possibih- 
ties.  I  therefore  called  the  President's  attention  to  a 
report  that  Chile  has  seventy  million  acres  suitable  for 


CHILE  201 

farming,  all  of  which  has  sufficient  rainfall  or  is  capable 
of  irrigation.  Of  this  only  about  one  million  eight  hun- 
dred thousand  acres  are  said  to  be  in  actual  cultivation, 
on  account  of  the  lack  of  labor.  I  had  also  heard  that 
twenty  million  acres  in  the  central  zone  are  especially 
fitted  for  fruit  growing,  and  that  Chilean  peaches,  figs, 
almonds,  and  ohves  are  unexcelled ;  and  that  the  more 
hardy  fruits,  such  as  apples,  pears,  plums,  and  the  like 
can  be  grown  as  well.  Concerning  these  agricultural 
possibilities,  the  President  replied : 

"I  do  not  doubt  that  agriculture  will  be  developed 
more  and  more  in  Chile;  but  I  do  not  think  it  has  any 
such  possibihties  as  Argentina  can  offer.  Labor  is  too 
scarce  in  Chile  to  make  agriculture  really  profitable  or 
attractive  to  immigration  from  your  own  or  any  simi- 
lar country.  Certainly  the  most  that  our  farmers  can 
hope  to  do  is  to  supply  the  Chilean  market,  and  to 
make  it  unnecessary  for  us  to  import  foodstuffs.  The 
same  conclusion  applies  to  our  timber.  We  have  ex- 
tensive forests;  but  they  are  all  needed  for  home  con- 
sumption, and  not  a  foot  of  lumber  should  be  exported. 

''  Instead  of  advising  capital  from  your  United  States 
to  invest  in  lands  for  agriculture,  I  advise  them  to  con- 
sider manufacturing  possibihties  in  Chile.  Next  to 
mining,  Chile  must  look  to  manufacturing  for  future 
growth.  I  believe  that  Chile  is  to  become  the  great 
manufacturing  center  of  South  America.  Here  we 
have  iron,  coal,  timber,  water  power,  chemicals,  wool, 
and  all  the  raw  materials.  I  believe  that  your  people, 
instead  of  trying  to  sell  us  goods,  should  come  down 
here  and  build  mills.  Give  Chile  a  market  for  her 
nitrates,  copper,  and  iron,  together  with  capital  to 
build  mills,  factories,  and  ships.    In  such  a  case,  Chile 


202  THE  FUTURE  OF  SOUTH  AMERICA 

will  become  a  great  industrial  country,  an  exporter  in- 
stead of  an  importer." 

In  closing,  I  asked  the  President  if  he  had  any  sugges- 
tions for  the  manufacturers  of  the  United  States  as  to 
how  closer  relations  could  be  established  between  us 
and  Chile.  Although  we  buy  eighteen  per  cent,  of 
Chile's  exports,  we  supply  only  fourteen  per  cent,  of  its 
imports. 

He  replied  at  once : 

''Your  merchants  of  North  America  must  start  banks 
here  in  Chile  before  you  can  hope  to  accomplish  much 
in  securing  Chilean  trade.  People  in  South  America 
judge  a  foreign  country's  importance  by  its  steamship 
lines  and  banks,  especially  the  latter.  Yes,  I  cannot 
place  too  much  stress  upon  both  the  need  of  good  North 
American  banks  in  Chile  and  the  profit  which  should 
accrue  to  your  people  who  shall  start  such  banks. 
Money  often  loans  in  Chile  on  the  best  security  at 
from  ten  to  twelve  per  cent.  The  government  tax  on 
banks  is  very  slight.  Our  Constitution  demands  that 
foreign  and  domestic  banks  must  be  treated  alike. 
Moreover,  a  bank  established  now  should  continue  to 
be  a  source  of  great  profit  even  after  Chile  becomes  an 
exporter  of  merchandise  instead  of  an  importer.  As  a 
bank  does  all  its  business  in  paper  currency,  it  is  not 
affected  by  the  variations  in  exchange  and  the  other 
factors  which  may  bother  an  importer.  I  strongly  ad- 
vise the  manufacturers  of  the  United  States  to  get  to- 
gether and  form  a  Bank  of  North  America  for  Chile." 

In  this  connection,  I  have  been  told  that  the  German 
and  English  banks  copy  full  particulars  from  the 
drafts,  bills  of  lading,  etc.,  which  manufacturers  in  our 
country  are  compelled  to  use  when  sending  goods  to 


CHILE  203 

South  America.  For  instance,  assume  that  a  big  de- 
partment store  in  Santiago  buj's  a  bUl  of  goods  from  a 
New  Enghmd  mill,  and  the  New  England  people  draw 
upon  the  Chilean  store  for  payment.  Assume  that  the 
New  England  people  deposit  their  draft  in  the  Tenth 
National  Bank  of  Boston,  which  may  sell  it  or  send  it 
to  the  English  Bank  of  Santiago  for  collection.  It  can 
readily  be  seen  that  it  would  be  a  ver>^  simple  matter  for 
the  English  bank  to  note  the  character  of  the  goods  sold, 
to  whom  these  goods  are  going,  and  the  price  at  which 
they  are  sold.  British  loyalty  might  readily  demand 
that  this  information  be  furnished  to  English  import- 
ers who  would  next  time  outbid  the  United  States 
merchants. 

Whether  the  EngHsh  and  German  banks  do  this  sys- 
tematically, I  do  not  know;  but  this  is  a  sub  rosa 
reason,  given  in  South  America,  why  our  United  States 
merchants  do  not  get  more  repeat  orders.  Certainly  it 
looks  suspicious  to  see  catalogues  of  printing  ma- 
chinery begin  to  come  to  a  Chilean  pubHsher  from  Eng- 
Hsh and  German  concerns  shortly  after  he  buys  a 
printing  press  from  a  New  York  firm. 

To-day,  when  you  go  to  your  big  banlv  in  New  York, 
Philadelphia,  Chicago,  or  some  other  city,  to  get  a  re- 
port on  the  credit  of  some  South  American  concern, 
what  does  your  bank  do?  It  directly  or  indirectly  de- 
pends upon  its  South  American  correspondent  for  such  a 
report.  This  usually  means  that  ultimately  an  English 
or  German  bank  is  resorted  to  for  such  a  report.  Is  it 
not  human  nature  that  such  a  report  would  discourage 
you  from  giving  the  desired  credit  if  the  concern  is  good, 
and  encourage  you  to  do  it  if  the  concern  is  no  good? 
German  and  Englisli  mistaken  loyalty  to  their  country- 


204  THE  FUTURE  OF  SOUTH  AMERICA 

men  may  or  may  not  be  responsible  for  such  results, 
but  it  nevertheless  continually  happens.  It  is  an  old 
saying  that  what  costs  nothing  is  worth  only  what  it 
costs;  and  this  applies  to  certain  reports  and  other 
service  which  banks  in  the  United  States  are  to-day 
securing  for  you  and  other  customers  relative  to  Latin- 
American  credits. 

But  from  what  I  have  said  do  not  get  any  exagger- 
ated idea  of  the  Chileans.  Although  they  are  in  ad- 
vance of  the  Venezuelans,  Colombians,  Ecuadorians, 
Bolivians,  and  even  the  Peruvians,  they  still  have  many 
of  the  Latin-American  weaknesses.  The  average 
Chilean  seems  interested  only  in  to-day.  He  —  and 
especially  his  wife  and  children  —  seem  to  be  very  par- 
tial to  show  and  artificial  makeshifts.  The  Chileans 
are  not  exactly  lazy,  but  they  are  far  from  active.  They 
still  say  "maiiana." 

Yet  we  must  not  be  too  critical  of  these  people. 
Had  we  been  under  the  Spanish  yoke  for  over  four  cen- 
turies and  had  our  savings  stolen  from  us  as  fast  as  we 
accumulated  anything,  would  we  have  formed  the 
habit  of  saving?  I  honor  the  Chileans  for  what  they 
have  gone  through  and  overcome. 

One  is  surprised  to  see  so  little  colored  blood  in  Chile. 
Instead  of  a  large  per  cent,  of  the  people  being  dark,  as 
is  the  case  in  the  other  West  and  North  Coast  coun- 
tries, ninety  per  cent,  are  as  white  as  the  people  of 
Chicago.  This  is  probably  due  to  the  very  strict  immi- 
gration laws  of  Chile  which  forbid  the  negroes.  China- 
men, and  certain  other  races  from  entering  the  country. 

The  Chileans  are  a  very  proud  race.  Perhaps  the 
following  incident  may  illustrate  this  fact.  An  Eng- 
lishman whom  I  met  had  been  looking  about  for  a  house 


CHILE  205 

during  the  business  depression  in  1915.  The  day  be- 
fore I  was  at  Santiago  he  visited  five  large  dwellings 
which  were  for  rent  or  for  sale.  The  tenants  of  all  these 
were  supposed  to  be  at  Vina  del  Mar,  or  some  other 
fashionable  resort  for  the  summer.  Newspapers  were 
hung  up  at  the  windows,  and  to  all  api^earances  the 
houses  were  shut  up.  Imagine  my  friend's  surprise 
when  in  three  of  these  houses  he  found  the  tenants  liv- 
ing in  the  back  part!  They  had  not  the  money  to  go 
away  for  the  summer;  they  were  too  proud  to  be  seen 
on  the  streets  of  the  city,  and  so  they  were  hiding  until 
their  neighbors  returned  from  the  seashore.  This  same 
trait  is  to  be  seen  in  the  dresses,  manners,  and  customs 
of  all  Chileans.  "Send  your  gayest  colors  and  latest 
styles  to  Chile,  whatever  the  quality  of  the  goods  may 
be,"  said  a  Chilean  merchant  to  me. 

Although  Chileans  have  great  respect  for  unwritten 
law,  I  am  told  that  they  have  less  regard  for  the  laws 
of  the  land.  A  poUceman  reprimanded  a  small  boy  for 
doing  something  against  the  law.  Was  the  boy  fright- 
ened? No!  He  simply  turned  to  the  policeman  and 
said:  "You  wait  till  I  catch  you  going  home  some 
night.  I  '11  fix  3^ou  for  bothering  me.  Of  course  I  can't 
help  myself  now,  because  you'll  call  another  cop  if  I 
touch  you.  But  you  wait  till  I  catch  you  without  your 
miiform  on!" 

The  law  is  very  severe  on  motormen,  if  any  one  is 
hurt  on  a  trjmi  car.  Hence,  when  a  slight  accident 
occurs,  the  motorman  leaves  his  car  and  runs  home  to 
hide  until  the  excitement  is  over.  Said  I:  "What  does 
he  gain  by  rurming  home?  He  can  easily  be  found 
there." 

"Yes,"  said  my  friend  in  reply,  "but  it  is  too  mucli 


206  THE  FUTURE  OF  SOUTH  AMERICA 

trouble  to  hunt  him  up.  If  the  pohce  can  catch  him 
on  the  car,  they  will  do  so;  but  they  would  not  bother 
to  run  after  him." 

"Too  much  trouble"  tells  the  story.  Although  the 
Chileans  are  far  ahead  of  most  of  the  South  American 
people,  yet  even  they  are  handicapped  by  the  phrase 
"too  much  trouble."    They  don't  seem  to  do  things. 

It  takes  a  lot  to  wake  up  the  Latin- Americans.  They 
are  good  at  sleeping  or  fighting;  but  they  seem  to  find 
it  difficult  to  strike  a  happy  medium.  Hence  —  in  ac- 
cordance with  the  law  of  action  and  reaction  —  they 
alternate  from  lethargy  to  revolution  and  from  revo- 
lution to  lethargy. 

This  spirit  is  very  evident  in  the  moving-picture 
shows  and  literature  of  the  land.  Since  they  seem  to 
crave  either  sleep  or  excitement,  either  the  dreamy 
guitar  or  the  tragic  dime  novel,  the  ordinary  humorous 
picture  at  the  "movies"  does  not  appeal  to  them.  It 
must  be  a  picture  of  a  lion  tearing  a  man  to  pieces,  or  a 
bridegroom  falling  dead  at  the  wedding  feast,  or  some- 
thing equally  harrowing.  Exaggerated  detective  stories 
are  in  great  demand,  with  men  passing  through  stone 
walls,  walking  on  the  water,  and  doing  other  impossible 
stunts. 

I  was  greatly  shocked  to  see  a  largely  advertised 
trade-mark  for  some  kind  of  oil,  consisting  of  a  pic- 
ture of  Jesus  being  taken  from  the  cross.  It  was  an 
awful  picture  —  to  me  both  sacrilegious  and  repulsive 
—  but  I  was  told  that  it  took  well  with  the  masses  of 
Chile. 

Nevertheless,  the  Chileans  are  a  fine,  courtly  people. 
I  am  always  interested  to  note  that  when  two  employees 
of  the  same  firm  happen  to  meet  on  the  street,  they  in- 


CHILE  207 

variably  stop  and  shake  hands,  even  though  they  may 
have  met  once  or  twice  before  that  same  morning. 
Every  one  seems  to  have  plenty  of  time.  Even  the 
working  men  in  Chile  will  stop  and  shake  hands  with 
one  another  in  the  most  formal  way.  This  is  something 
one  never  sees  in  the  United  States.  The  Chilean  day- 
laborer  even  takes  off  his  hat  to  his  co-workers  —  a 
very  pretty  custom. 

The  Chileans  are  congenial,  kind-hearted,  and  intel- 
ligent. I  became  very  fond  of  them,  as  well  as  of  their 
countr}',  wath  its  wonderful  and  varied  climate.  But 
readers  must  not  forget  the  "ducks  and  dollars"  to 
which  I  referred.  Before  Chile  can  become  either  a 
buj'er  or  a  seller  of  general  merchandise,  she  must  se- 
cure greater  markets  for  her  nitrates  and  greater  credit 
for  her  people.  Until  that  time  comes,  the  traveling 
salesman  from  the  United  States  will  have  hard  pick- 
ing. He  ^nll  feel  like  a  salesman  from  Chicago,  who 
when  calling  on  a  Valparaiso  merchant  received  the 
following  reply: 

"I  am  very  sorry,  Mr.  Jones,  that  I  cannot  buy  of 
your  Chicago  firm.  I  should  like  very  much  to  do  so, 
but  it  is  impossible,  for  the  following  three  reasons: 
first,  because  I  have  n't  any  money;  second  —  " 

"Never  mind  the  other  reasons,"  broke  in  the  Chi- 
cago salesman,  "the  first  reason  will  do." 

After  receiving  virtually  the  same  reply  from  nearly 
all  the  merchants  in  Valparaiso  and  Santiago,  he  took 
the  next  train  for  Buenos  Aires. 

The  future  of  Chile  depends  upon  how  successful  it 
will  be  in  attracting  capital.  At  the  present  time,  capi- 
tal is  greatly  influenced  by  the  condition  of  the  nitrate 
industry.     However,  I  believe  that  the  Chileans  are 


208  THE  FUTURE  OF  SOUTH  AMERICA 

bright  enough  to  develop  other  industries,  and  will  not 
continue  to  be  dependent  upon  nitrates  alone. 

In  such  a  case,  Chile's  future  will  depend  upon  its 
government's  attitude  toward  outside  capital.  If  the 
present  landowners  are  selfish  and  consider  merely  their 
own  ease  and  comfort,  then  legislation  will  continue 
along  the  present  conservative  lines  in  the  interests  of 
the  few  rich  families  of  Chile.  If,  however,  progressive 
legislation  is  enacted  for  the  real  benefit  of  the  working, 
as  well  as  the  landed,  classes,  then  all  new  development 
work  will  be  encouraged  and  protected. 


CHAPTER  XIII 

The  Strait  of  Magellan 

From  Valparaiso  the  shortest  route  to  the  next  great 
country  of  South  America,  the  Argentine  Repubhc,  is 
by  rail,  but  the  trip  through  the  Strait  of  Magellan  is 
not  only  interesting  on  account  of  the  scenic  features, 
but  also  for  the  commercial  opportunities  offered  in  this 
little-knowTi  land.  From  Valparaiso  southward  along 
the  Chilean  coast  it  is  fourteen  hundred  miles  to  the 
Strait  of  Magellan.  Sailing  vessels  cannot  go  through 
the  strait,  because  the  high  mountains  on  each  side 
cut  off  the  wind,  and  they  therefore  have  to  "round  the 
Horn."  Steamers  avoid  this  rough  and  stormy  passage 
by  going  through  the  narrow  chamiel  which  separates 
the  island  of  Tierra  del  Fuego  and  the  Horn,  which  is 
also  an  island,  from  the  mainland  of  Patagonia.  For 
the  two  daj's  before  reaching  the  strait,  the  steamer 
passes  along  the  western  coast  of  Chile  and  by  numer- 
ous islands,  which  are  uninhabited,  excepting  by  a  few 
wTetched  Indians,  who  support  themselves  by  fishing. 
Between  these  islands  is  a  perfect  labyrinth  of  sounds 
and  bays,  a  great  hiding  place  for  pirates  during  the 
past  four  hundred  years.  The  land  about  is  covered 
with  woods  almost  as  dense  as  a  jungle. 

The  Strait  of  Magellan  is  unlike  any  other  strait 
in  appearance,  as  the  two  ends  are  entirely  different  in 
their  physical  characteristics.    Both  sides  of  the  shore 


210  THE   FUTURE   OF   SOUTH   AMERICA 

at  the  western  end  are  alike  in  being  rugged  and  moun- 
tainous. At  the  eastern  end,  both  shores  are  broad  and 
fertile  plains.  The  western  end  is  the  southern  terminus 
of  the  great  Andes  range  of  mountains,  and  for  the  first 
fifty  miles  the  steamer  passes  between  the  peaks  of  these 
mountains,  just  projecting  out  of  the  water.  In  fact,  the 
western  end  of  the  strait  is  simply  a  submerged  moun- 
tain pass.  There  is  hardly  a  sign  of  life  from  the  begin- 
ning of  the  strait  until  Cape  Froward  is  reached  two 
hundred  miles  east.  The  hills  are  wooded,  and  here  and 
there  are  great  blue  glaciers.  There  are  only  two  or 
three  settlements,  each  of  about  a  dozen  huts.  The  in- 
habitants of  the  interior  of  this  country  are  the  most 
uncivilized  savages  known  to  man.  They  wear  no 
clothes  except  in  cold  weather,  when  they  cover  them- 
selves with  one  rough  skin;  they  have  no  huts  or  vil- 
lages, but  simply  roam  about  like  wild  animals.  They 
have  not  even  the  intelligence  of  animals,  for  the  bears 
and  other  beasts  have  forsaken  this  southern  land  of 
rain  and  fog. 

East  of  Cape  Froward  the  air  is  drier,  the  shores  less 
rugged  and  mountainous,  and  the  forests  are  thicker. 
Finally,  the  hills  gradually  decline  to  great,  open 
stretches  of  land  almost  like  our  prairies  of  the  West. 
Some  seventy-five  miles  northeast  of  Cape  Froward,  the 
steamer  reaches  Punta  Arenas,  the  most  southerly  city 
in  the  world. 

Punta  Arenas  is  a  smart  little  town  of  several  thou- 
sand people.  It  consists  of  six  or  seven  wide  streets, 
partly  built  up,  running  parallel  to  the  shore.  These 
streets  are  crossed  by  others  running  uphill  from  the 
shore.  The  houses  average  very  well  in  appearance, 
and  there  are  some  fine  concrete  buildings,  three  stories 


THE   STIL\IT   OF   MAGELLAN  211 

high.  There  is,  therefore,  nothing  especially  attractive 
or  quaint  about  the  place,  though  it  is  well  laid  out  and 
clean.  The  location  was  first  used  by  the  Chileans  as  a 
place  of  exile  for  convicts,  but  was  later  a  whaling 
station.  Recently  it  has  profited  by  a  vein  of  coal  dis- 
covered in  the  vicinity.  Owing  to  the  opening  of  the 
railroad  line  across  the  Andes  and  also  of  the  Panama 
Canal,  house  lots  in  Punta  Arenas  have  recentl}'  de- 
clined in  price.  Besides  serving  as  a  fur  market  for  the 
Indians  of  the  vicinity,  Punta  Arenas  is  the  port  of  the 
wool  companies  of  Tierra  del  Fuego.  Wool,  I  believe, 
will  some  day  become  a  great  product  in  this  vicinity. 
The  island  is  controlled  by  English  sheep-raising  corpo- 
rations, and  many  English  have  come  to  Punta  Arenas 
to  live.  Indeed,  most  of  the  population  speak  English, 
and  the  port  has  more  the  appearance  of  an  English 
colony  than  a  Chilean  toA\Ti. 

As  many  of  the  guidebooks  speak  disparagingly  of 
this  to\\Ti,  I  want  to  insist  that  it  is  a  modern,  up-to- 
date  place  with  an  active  Chamber  of  Commerce,  some 
fine  stores,  and  two  or  three  banks.  The  Bank  of  Punta 
Arenas  has  a  good  building  and  a  capital  of  five  million 
dollars.  Money  rates  are  only  eight  to  nine  per  cent.,  as 
compared  with  ten  and  twelve  at  Santiago.  Of  course 
the  climate  is  dreary  in  the  ^vinter,  with  short  days  and 
lots  of  snow.  But  whatever  the  climate,  the  town  has 
a  future  as  the  wool  industry  develops.  Although  it  is 
off  the  beaten  track  and  must  henceforth  depend  entirely 
on  the  country  to  the  north,  yet  it  should  slowly  grow. 
There  is  trade  here,  and  a  good  idea  of  this  may  be 
gained  from  the  following  interview  with  one  of  the 
leading  merchants.     He  said: 

"When  you  get  back  to  the  States,  please  tell  your 


212  THE   FUTURE   OF   SOUTH  AMERICA 

readers  that  although  we  Hve  in  the  most  southerly 
city  in  the  world,  we  are  not  wild  Indians.  We  not  only 
want  to  buy  goods,  but  we  want  good  goods.  Al- 
though the  German  goods  are  lowest  in  price,  they  are 
not  good  enough  for  us.  Whether  buying  automobiles, 
typewriters,  sewing  machines,  shoes,  or  hardware,  our 
customers  want  the  very  best.  Moreover,  if  the  U.  S.  A. 
manufacturers  will  send  their  best  quality  of  goods  to 
South  America  and  compete  for  quality  instead  of  for 
price,  they  will  win  a  great  victory  in  the  end.  Like- 
wise, although  the  Germans  have  been  getting  the 
trade,  owing  to  their  low  prices,  the  label  'Made  in 
Germany'  is  beginning  to  stand  for  a  cheap  quality  of 
goods.  The  manufacturers  and  the  labor  unions  of  the 
United  States  have  a  great  opportunity  for  building  up 
a  tremendous  South  American  trade  by  simply  in- 
sisting that  'U.  S.  A.'  be  stamped  only  on  goods  of 
quality.  This  especially  applies  to  the  trade  here  in 
Punta  Arenas." 

This  statement  reminds  me  of  something  a  gentleman 
told  me  on  his  way  back  from  Chile.  As  I  have  said,  it 
appears  that  one  of  the  largest  copper  mines  in  the  world 
is  located  in  Chile,  east  of  Antofagasta.  As  such  a 
mining  plant  is  in  the  mountains,  away  from  civiliza- 
tion, it  is  necessary  for  the  company  to  operate  a  store 
at  which  the  men  can  trade.  Concerning  these  stores, 
it  was  said  to  me: 

"When  first  entering  the  store,  I  was  astonished  at 
the  fine  stock  of  goods  which  was  carried.  I  was  on  the 
point  of  questioning  the  manager  about  carrying  such 
luxuries  away  up  here  in  the  mountains  when  two  hare- 
footed  workmen  came  in.  The  first  asked  for  a  pair  of 
shoes,  and  the  storekeeper  showed  him  some  work- 


THE  STRAIT   OF   MAGELLAN  213 

men's  shoes.  *  I  don't  want  shoes  to  work  in,'  said  the 
miner.  '  I  work  in  my  bare  feet.  I  want  the  shoes  to 
wear!'  Then  the  storekeeper  showed  a  very  good  shoe 
such  as  he  himself  wore;  but  the  miner  asked,  'Is  this 
your  best  shoe? '  The  clerk  replied :  *  No,  we  have  some 
expensive  American  shoes  selling  at  ten  dollars  gold  per 
pair.'  These  were  just  what  the  miner  wanted.  The 
sale  was  quickly  made,  and  the  miner  went  away 
happy. 

"The  other  workman  inquired  for  soap,  and  he  was 
shown  a  wcll-knowni  New  York  brand  which  retails  in 
Chile  for  about  twenty  cents  per  cake.  This  did  not 
suit  at  all,  and  he  was  then  shown  a  cake  of  famous 
English  soap,  selling  somewhat  higher.  The  worlanan 
smelled  of  this  and  turning  up  his  nose  said:  'I  want 
something  that  smells  good  like  the  violets  that  grow 
in  vallej's.  Show  me  your  best  soap.'  The  storekeeper 
then  went  to  the  show  case  and  took  out  some  expen- 
sive Parisian  soap  selling  at  nearly  one  dollar  and  a  half 
per  cake.  This  was  precisely  what  the  miner  wanted. 
He  gave  his  entire  day's  wages  for  this  cake  of  soap  and 
happily  went  on  his  way." 

The  future  of  Pmita  Arenas,  to  my  mind,  depends 
upon  its  being  the  outlet  for  the  wool  industry  more 
than  upon  the  use  of  the  Strait  as  a  channel  for  com- 
merce. If  the  wool  industry  of  Patagonia  prospers,  and 
the  ranchers  continue  to  bring  their  wool  to  Punta 
Arenas  for  shipment,  the  city  has  a  bright  future.  If, 
however,  they  break  through  to  the  eastern  coast  of 
Argentina  and  ship  from  there,  then  Punta  Arenas 
will  be  handicapped. 


CHAPTER  XIV 

Argentina 

The  story  of  Argentina's  commercial  and  industrial 
development  is  a  romance.  Starting  to  realize  on  its 
great  natural  resources  only  about  1860,  to-day  the 
Argentine  Republic  is  a  billion-dollar  country,  the 
wonder  of  the  world.  When  one  appreciates  that  its 
period  of  great  wealth  has  only  begun,  that  most  of  its 
greatness  is  still  in  the  future,  one  is  almost  over- 
whelmed by  the  possibilities  presented. 

Before  considering  this  great  country  in  detail,  let  me 
say  first  that  it  is  foolishness  for  me  or  any  one  else  to 
judge  a  country  or  even  a  city  from  information  obtained 
in  a  visit  of  a  few  days.  Before  going  to  Argentina,  I 
had  the  country's  statistics  of  agricultural,  industrial, 
and  commercial  growth.  To  these  statistics  I  have  now 
added  many  others,  and  from  them  all  it  is  now  possible 
for  me  fairly  to  judge  Argentina  and  Buenos  Aires.  It 
is  a  mistake  to  judge  only  from  impressions,  even  though 
the  most  prominent  and  best  informed  people  are  met. 
Thus  I  urge  readers  to  study  a  country's  statistics  before 
judging  it,  rather  than  to  depend  upon  what  any  one 
says,  whether  that  person  has  been  there  ten  days  or 
ten  years. 

I  once  talked  with  a  Buenos  Aires  representative  of  a 
concern  well  known  in  the  United  States.  He  laughed 
at  me  and  my  companions   for   attempting  to  pass 


ARGENTINA  215 

judgment  on  Argentina  after  such  a  short  visit.  Said 
he:  "I  have  been  dowTi  here  several  months  and  have 
traveled  many  thousand  miles,  and  yet  I  know  very 
Uttle  about  Argentina.  How  can  you  expect  to  learn 
an3i;hing  during  such  a  short  visit?" 

One  of  my  friends  turned  to  him  and  said:  "By  the 
waj',  have  you  seen  the  Boletin  Official  Rcsumen,  which 
gives  each  month  the  failure  statistics,  bank  clearings, 
unemplo^micnt  figures,  etc.,  for  Argentina?" 

To  this  he  answered:  "No,  I  have  been  so  busy  on 
special  work  in  Argentina  that  I  have  not  yet  had  time 
to  read  dry  statistics.  After  I  get  acquainted  and  thor- 
oughly posted  as  to  conditions,  then  I  may  have  time 
to  study  the  country's  statistics." 

Just  think  of  this  man's  ignorance!  And  yet  this 
represents  the  attitude  of  many  of  the  North  Ameri- 
cans, English,  and  Germans  located  in  Buenos  Aires. 
They  think  they  loiow  all  there  is  to  know  about  this 
country  because  they  live  there.  I  therefore  urge  all 
readers  to  give  less  attention  to  what  people  say  about 
a  country  and  more  to  its  statistics. 

Another  thing  —  don't  depend  upon  Americans, 
English,  French,  or  Germans  for  your  information  about 
Argentina.  The  Americans  there  have  worked  hard  to 
get  a  foothold,  and  now  do  not  want  competition.  As  a 
result,  they  talk  discouragingl3^  The  English  are  polite 
and  sociable,  but  when  it  comes  to  doing  business  in 
Argentina,  it  is  asserted  that  they  will  "knife"  us  in 
the  back!  Certainly  we  should  not  expect  encourage- 
ment from  representatives  of  the  French,  German, 
Spanish,  Italian,  or  other  races  who  are  now  well 
located  there.  These  people  are  not  our  friends;  they 
don't  want  us  to  "butt  in"  to  the  South  American 


216  THE   FUTURE   OF  SOUTH  AMERICA 

field.  They  therefore  talk  pessimistically  and  discour- 
agingly.  Hence,  in  my  investigations,  I  have  depended 
only  upon  official  statistics,  or  else  upon  information 
obtained  from  my  Argentine  friends. 

In  the  old  geographies,  Argentina  was  called  Pata- 
gonia, and  was  described  as  a  barren  desert  sparsely 
inhabited  by  wild  aborigines  of  great  stature.  The 
coast  is  still  bleak  and  uninteresting,  the  rivers  still 
flow  to  the  sea,  and  the  winds  continue  to  blow,  but 
otherwise  there  is  a  great  change.  Year  by  year 
more  land  has  been  cultivated,  and  now  millions  of 
blooded  cattle  roam  the  pastures.  After  leaving 
Punta  Arenas,  express  steamers  take  three  days  and 
three  nights  to  reach  Buenos  Aires,  and  when  the 
traveler  reaUzes  that  the  mouth  of  the  La  Plata  River 
is  very  nearly  in  the  middle  of  Argentina,  that  there 
is  more  than  twice  as  much  area  north  as  south  of  it, 
he  begins  to  appreciate  the  size  of  this  South  Amer- 
ican republic. 

The  mere  figures  —  area,  1,129,400  square  miles  — 
do  not  give  a  definite  idea  of  the  extent  of  this  country. 
If  transferred  to  North  America,  Argentina  would  cover 
the  Pacific  coast  territory  from  the  Canadian  line  to 
the  southern  extremity  of  Mexico,  including  the  States 
of  Washington,  Oregon,  and  California  and  all  the 
States  of  Mexico.  If  placed  in  the  eastern  part,  it 
would  cover  that  section  of  the  United  States  east  of 
the  Mississippi,  and  the  first  tier  of  States  beyond  it. 
It  would  make  twenty-five  Pennsylvanias.  Its  coast 
line  is  equal  to  a  line  drawn  from  Key  West,  Florida,  to 
Halifax,  Nova  Scotia,  and  its  wide  range  of  climatic 
conditions  is  indicated  by  the  fact  that  its  territorj^ 
stretches  over  as  many  degrees  of  latitude  as  there  are 


ARGENTINA  217 

between  the  most  southerly  point  of  Florida  and  the 
center  of  Hudson  Bay. 

The  climate,  therefore,  is  temperate,  with  sHght  vari- 
ations, but  it  must  be  remembered  that  the  northern  tip 
of  the  republic  is  within  the  tropics,  and  that  the  south- 
ern extremitj'-,  at  latitude  50°  south,  is  swept  by  cold 
Antarctic  winds.  Buenos  Aires  is  in  the  same  latitude 
as  Cape  Town,  Africa.  The  region  from  the  estuary 
of  the  Rio  de  la  Plata  to  the  outlying  foothills  of  the 
Andes,  a  territory  about  six  hundred  miles  square,  is 
hke  our  South,  as  the  heat  is  great  only  during  the 
mitldlc  of  summer  and  the  winter  cold  is  moderate.  The 
most  northern  and  southern  parts  have  a  very  rainy 
summer  season.  In  the  western  and  central  portions 
there  is  httle  rain.  This  especially  applies  to  the 
western  section,  so  that  much  of  this  region  is  too  dry 
to  be  cultivated  except  by  irrigation.  The  streams 
descending  from  the  Andean  snows  provide  water. 
Though  many  of  them  are  lost  in  the  arid  ground  be- 
fore reaching  the  sea,  yet  they  supply  sufficient  mois- 
ture below  the  surface,  so  that  wells  may  be  success- 
fully dug. 

The  population  of  the  Argentine  has  increased  from 
3,956,000  in  the  census  year  of  1895  to  an  estimated 
population  of  at  least  nine  miUion.  The  Argentine, 
from  the  standpoint  of  chmate  and  soil,  is  said  to  pre- 
sent the  most  nearly  perfect  area  that  the  world 
contains  for  the  production  of  wheat,  corn,  oats,  and 
meat  products.  Evidence  of  this  is  seen  in  the  rapid 
growth  in  the  cultivated  area  of  the  country,  which 
has  incrca.sed  from  about  thirteen  million  acres  in  1896 
to  the  present  total  of  about  sixty  milhon  acres,  or 
over  three  hundred  per  cent.     The  progress  made  in 


218  THE  FUTURE  OF  SOUTH  AMERICA 

the  last  ten  years  gives  an  interesting  insight  into  the 
possibihties  of  future  growth.  During  this  period,  the 
cultivated  area  has  doubled,  and  the  value  of  the  four 
principal  Argentine  crops  (wheat,  corn,  oats,  and  flax), 
estimated  at  the  average  export  prices,  has  increased 
fifty-nine  per  cent.  The  Argentine  probably  produces 
per  capita  a  greater  excess  of  foodstuffs  over  its  own 
needs  than  any  other  country  in  the  world. 

Buenos  Aires,  the  capital  of  Argentina,  with  its  pop- 
ulation of  over  a  million  and  a  half,  is  the  largest 
Spanish  city  in  the  world,  the  largest  city  in  South 
America,  and  the  fourth  largest  in  the  Western  Hemi- 
sphere. Of  every  five  people  in  the  republic,  one  hves 
in  the  capital  city.  This  city,  which  has  made  such  a 
wonderful  growth  as  to  attract  the  attention  of  the 
whole  world,  was  founded  in  1536  by  Pedro  Mendoza. 
It  was  soon  captured  by  the  Indians,  but  later  recap- 
tured by  the  Spaniards.  It  was  taken  by  the  English, 
but  was  held  by  them  only  a  short  time.  In  1810  the 
Argentine  achieved  its  independence;  but  an  era  of 
civil  war  followed,  and  it  was  not  until  the  fall  of  the 
dictator  Rosas,  in  1852,  that  anything  Uke  real  prog- 
ress began. 

The  estuary  or  bay  of  the  Rio  de  la  Plata  is  about  two 
hundred  miles  long  from  the  point  where  it  is  formed 
by  the  junction  of  the  great  river  Uruguay  and  the 
larger  Parana,  to  its  entrance  into  the  Atlantic.  Buenos 
Aires  is  one  hundred  and  fifty  miles  up  this  estuary, 
which  is  twenty-eight  miles  wide  opposite  the  city. 
Not  much  of  the  city  can  be  seen  from  the  wharves, 
for  it  lies  only  thirty  feet  above  high-water  mark, 
and  for  miles  beyond  it  there  is  nothing  but  flat  prairie, 
with  not  even  a  rock  to  break  the  monotony.    Previous 


ARGENTINA  219 

to  1895,  seagoing  vessels  had  to  lie  several  miles  off 
Buenos  Aires,  discharging  their  cargoes  by  lighters, 
and  their  passengers  either  by  small  boats  or  by  curious, 
high-wheeled  carts  which  carried  them  through  shallow 
water  to  the  shore.  With  great  enterprise  and  courage, 
a  long,  deep  channel,  which  is  kept  open  by  constant 
dredging,  has  been  dug,  so  that  large  steamers  can 
now  come  to  the  very  edge  of  the  city.  In  fact,  the 
city  has  the  finest  system  of  artificial  docks  that  I 
have  ever  seen. 

Whether  or  not  the  cleanhness  of  the  city  is  due  to 
the  fact  that  it  Ues  in  the  temperate  zone,  I  do  not 
know.  Certainly  Buenos  Aires  (good  air)  is  well 
named,  for  the  air  is  clear  and  keen.  There  are  no 
large  factories  to  pollute  it  with  soft  coal  smoke.  The 
streets  are  narrow  and  crowded  in  the  business  parts, 
but  broader  in  the  newer  portions,  which  are  well  laid 
out.  The  question  of  transportation  is  solved  by  as 
good  a  car  service  as  is  to  be  found  in  any  North 
American  city,  having  about  four  hundred  and  fifty 
miles  of  surface  track,  and  under  the  principal  avenue 
is  a  subway  extending  two  miles.  Eight  miles  more  of 
underground  road  are  planned,  and  some  of  it  is  already 
under  construction.  The  number  of  passengers  carried 
in  one  year  approximates  four  hundred  milhon.  There 
are  over  fifty-three  thousand  registered  vehicles,  of 
which  nearly  four  thousand  are  private  motor  cars,  and 
two  thousand  motor  carriages  for  hire.  More  than  four 
hundred  newspapers  are  published  regularly  in  Buenos 
Aires,  a  hundred  of  them  representing  the  foreign  col- 
onies. The  water  supply,  electric  and  gas  facihties,  the 
police  force  and  fire  department,  the  various  intellectual 
factors,  like  museums,  art  galleries,  public  schools,  and 


220  THE  FUTURE  OF  SOUTH  AMERICA 

libraries,  as  well  as  such  social  factors  as  clubs,  asso- 
ciations, and  societies,  are  all  present  and  developed 
according  to  the  modern  type.  The  hotels  are  equipped 
to  receive  the  most  exacting  class  of  the  traveling 
public,  and  other  conveniences  for  the  transient  or 
permanent  resident  place  the  city  on  a  par  with  the 
best  capitals  of  Europe  and  North  America. 

Though  Buenos  Aires  is  often  described  as  a  cosmo- 
politan place,  its  population  does  not  include  so  many 
nationalities  as  would  be  found  in  most  large  cities  of 
our  own  country.  There  are  English  and  German  col- 
onies, composed  mostly  of  business  and  railway  men, 
each  keeping  rather  exclusively  to  itself  as  far  as  social 
relations  are  concerned.  Of  the  so-called  Latin  element, 
probably  about  half  is  Argentine  born. 

The  parks  of  Buenos  Aires  especially  appealed  to  me. 
They  are  well  laid  out  and  exceedingly  well  kept.  The 
park  Palermo,  with  its  rose  garden  and  tea  house,  is 
most  fascinating;  while  the  "Zoo"  and  the  Botanical 
Gardens  are  likewise  very  interesting.  The  city,  al- 
though not  so  large  as  Paris,  and  hence  not  so  spectacu- 
lar, is  newer  and  fresher.  At  first  glance,  I  was  more 
impressed  by  Buenos  Aires  than  by  any  of  the  old  or 
new-world  cities  that  I  have  ever  visited. 

The  commerce  of  the  whole  Argentine  Republic 
centers  in  Buenos  Aires,  and  it  is  a  common  sight  to  see 
scores  and  scores  of  merchant  vessels  flying  the  flags 
of  all  important  countries,  except  the  United  States, 
loading  and  unloading  along  its  waterfront.  Right  here 
it  may  be  well  to  remark  that  before  our  Civil  War 
there  were  in  this  harbor  six  hundred  vessels  carrying 
our  flag,  or  more  than  double  the  number  from  all 
other  nations  combined.    In  those  days,  the  influence 


ARGENTINA  221 

of  our  people  over  the  commerce  of  South  America 
was  predominant.  A  Pennsylvanian,  William  Wheel- 
wright, was  looked  upon  as  its  father.  Would  that  he 
might  be  resurrected!  A  WTiter  comments  on  the  fact 
that  in  1910,  out  of  the  many  thousands  of  ships  that 
transferred  cargoes  here,  only  four  bore  the  Stars  and 
Stripes. 

The  docks,  designed  by  a  celebrated  American  engi- 
neer, are  most  impressive,  consisting  of  rows  of  massive 
masonry  and  cement  wharves,  behind  which  spreads  a 
network  of  railway  lines.  The  docks  are  arranged, 
not  in  a  series  of  shps,  as  along  the  water  front  in  New 
York  City,  but  hke  basins,  so  that  vessels  can  moor  in 
them  on  all  four  sides.  The  cargoes  are  unloaded  by 
enormous  cranes,  and  cars  are  operated  directly  along- 
side. Yet,  extensive  as  is  this  docking  system,  it  is 
already  inadequate,  for  there  usually  are  a  number  of 
ships  lying  at  anchor  outside  in  the  river,  waiting  their 
turn  for  a  berth.  Immense  warehouses  and  giant  grain 
elevators  add  to  the  impressiveness  of  the  scene.  Even 
these  facilities  are  not  sufficient,  and  there  is  talk  of 
enlarging  the  capacity  of  La  Plata  and  Bahia  Blanca 
to  reheve  the  congestion.  In  fact,  Argentina  now  has 
three  additional  growing  ports,  Rosario,  Bahia  Blanca, 
and  La  Plata.  All  these  are  fine  cities.  One  who  thinks 
Buenos  Aires  is  the  only  city  of  Argentina  is  very  much 
mistaken. 

Skyscrapers  are  not  common  in  these  cities  of  the 
south,  though  a  few  tend  in  that  direction,  and  several 
boast  of  fifteen  stories.  Many  public  buildings  are  five 
stories,  or  even  more,  as  there  is  not  the  danger  from 
earthquakes  here  that  there  is  in  the  West  Coast  coun- 
tries.   Many  of  the  dwellings  are  low,  and  in  the  out- 


222  THE  FUTUEE  OF  SOUTH  AMERICA 

skirts,  which  may  be  called  the  slums,  the  homes  are 
little  better  than  shanties  —  a  great  contrast  to  the 
rest  of  the  well-built,  well-lighted,  and  very  clean  city. 

Buenos  Aires  has  impressed  me  as  quite  the  gayest 
city  in  the  world.  Also  it  is  an  expensive  city  in  which 
to  live.  As  a  matter  of  fact.  South  America  is  no 
place  for  poor  people,  and  Buenos  Aires  least  of  all. 
Rooms  in  the  best  hotels  are  six  dollars  a  day  and  up- 
ward, with  meals  correspondingly  high.  Even  respect- 
able boarding-houses  charge  four  dollars  a  day  for 
room  and  board.  A  little  restaurant  in  one  of  the  parks 
charged  three  pesos  ($1.32)  for  afternoon  tea! 

I  asked  an  American  who  had  lived  in  Buenos  Aires 
for  years  what  impressed  him  most  about  the  city,  and 
he  replied: 

"I  have  been  greatly  surprised  by  the  great  paradoxi- 
cal growth  of  ostentation  and  socialism  in  the  city. 
The  wealthy  people  are  greatly  given  to  artificial  show 
and  luxurious  display,  while  the  working  people  are  the 
most  openly  socialistic  of  any  city  in  the  world." 

Whether  or  not  this  impression  is  justified,  I  cannot 
say,  but  I  am  impressed  with  the  idea  that  one  seems  to 
breed  the  other  —  ostentation  and  socialism.  The 
people  of  Buenos  Aires  seem  to  be  unable  to  secure  their 
pleasure  through  natural  absorption,  as  do  the  people 
of  London,  Vienna,  and  even  Paris.  Buenos  Aires  re- 
minds me  of  New  York  and  Berlin  more  than  any  other 
cities.  The  pleasures  of  these  cities  are  of  an  artificial 
kind. 

Horse  racing  seems  to  be  the  most  popular  recreation, 
and  the  Jockey  Club  is  the  most  exclusive  social  organi- 
zation in  the  city.  Races  occur  twice  a  week  from 
March  through  December,  the  greatest  stakes  being 


ARGENTINA  223 

raced  for  in  September  and  October.  The  annual 
National  Prize  amounts  to  over  twenty-five  thousand 
dollars,  and  the  sale  of  tickets  for  this  race  reaches 
three  hundred  and  fifty  thousand  dollars.  Betting  is 
popular,  and  at  one  dollar  a  ticket,  twenty  million  bets 
are  made  a  year.  All  the  races  are  a  great  society 
event. 

The  parks  are  favorite  gathering  places  for  the  people 
of  fashion.  The  great  shaded  avenues  are  thronged 
with  carriages,  in  which  the  Argentine  women  may  sit 
to  display  their  gowns  and  jewels.  I  have  never  seen 
such  a  procession  of  fine  carriages,  horses,  and  auto- 
mobiles. The  people  of  Argentina  are  exceedingly  fond 
of  music,  and  their  opera  is  one  of  the  most  distinguished 
an^'^vhere.  The  Opera  House,  the  most  magnificent  in 
either  North  or  South  America,  cost  ten  million  dollars. 

Buenos  Aires  can  boast  of  one  of  the  greatest  of  the 
world's  newspapers,  La  Prensa.  It  is  housed  in  a  mag- 
nificent five-story  building,  and  there  is  no  newspaper 
building  anywhere  which  compares  with  it.  The  paper 
is  printed  in  Spanish,  and  has  a  circulation  of  one  hun- 
dred and  twenty  thousand,  but  its  advertising  rates 
are  very  high,  and  thus  it  is  enabled  to  do  things  un- 
dreamed of  by  our  papers.  The  building  contains,  in 
addition  to  the  printing  plant  and  offices,  a  lecture  room, 
a  large  audience  hall,  a  library,  reading  rooms,  baths, 
cafes,  music  rooms,  and  apartments  where  visitors  are 
entertained.  There  is  a  free  dispensary  for  those  who 
are  too  poor  to  pay  for  a  physician,  and  the  services  of 
a  lawyer  are  also  furnished  free. 

Buenos  Aires  also  has  La  Nacion,  which  is  perhaps 
the  most  independent  newspaper  in  South  America,  its 
proprietor,  Scnor  Georg  Mitti,  taking  personal  charge 


224  THE  FUTURE  OF  SOUTH  AMERICA 

of  its  direction.  Outside  of  these  two  papers,  and  one 
each  in  Santiago  and  Rio  Janeiro,  there  are  not  many 
large  newspapers  in  South  America.  There  are,  how- 
ever, numerous  smaller  papers,  and  nearly  all  are 
exceedingly  well  arranged  and  carefully  edited. 

The  capitol  building  in  Buenos  Aires  is  very  much 
like  our  own  at  Washington  in  general  appearance,  and 
in  front  of  it  is  an  extensive  plaza.  This  plaza  was  con- 
structed in  1910  for  the  celebration  of  the  centenary  of 
the  republic,  and  completed  in  the  short  space  of  ninety 
days.  In  that  time,  four  solid  blocks  of  buildings  were 
torn  down;  ground  was  filled  in,  leveled,  and  grassed; 
walks  were  laid;  trees,  shrubs,  and  flowers  were  planted; 
fountains  with  colored  waters,  obelisks,  candelabra,  and 
statues  erected  at  a  cost  of  five  million  dollars;  and 
everything  was  ready  to  receive  the  guests  at  the  cele- 
bration. 

Much  is  said  about  the  people  of  South  America 
being  slow.  Certainly  "manana"  seems  to  be  the  pass- 
word of  all  the  countries  excepting  Argentina,  Chile, 
and  southern  Brazil.  It  is,  however,  a  business  error  to 
consider  all  the  Latin-American  countries  as  having 
the  same  characteristics.  They  are  naturally  divided 
into  two  groups  —  the  Temperate  Group  and  the  Tropi- 
cal Group.  To  the  former  belong  Argentina,  Chile,  and 
southern  Brazil;  and  in  these  countries  are  the  oppor- 
tunities for  money  making.  In  fact,  the  first  lesson  for 
the  young  American  business  man  to  learn  is  that  dur- 
ing his  lifetime  the  big  opportunities  will  be  in  the 
temperate  zones. 

Thirty-four  miles  by  rail  from  Buenos  Aires  down  the 
river  is  La  Plata,  a  city  of  more  than  one  hundred  thou- 
sand people,  and  capital  of  the  province  or  State  of 


ARGENTINA  225 

Buenos  Aires.  It  is  a  made-to-order  eity,  like  our  own 
Washington,  and  is  well  planned  with  rectangular 
blocks,  also  many  diagonal  boulevards,  and  with  parks 
and  plazas.  On  account  of  the  wonderful  growth  of 
Buenos  Aires,  so  near,  the  development  of  La  Plata 
has  not  equaled  expectations.  It  possesses,  however, 
two  claims  to  consideration:  first,  as  the  political 
center  of  the  largest  and  wealthiest  province  of  the 
repubhc;  and  second,  as  a  great  transshipping  port, 
both  for  handling  trade  originating  in  the  province 
and  for  accommodating  ships  debarred  from  the  port 
of  Buenos  Aires  by  their  depth.  The  city  itself  is  five 
miles  from  its  port,  which  is  situated  on  a  small  arm  of 
the  Rio  de  la  Plata.  (By  the  way,  plata  means  "  silver, " 
so  that  we  may  call  this,  in  English,  the  Silver  River.) 
Another  semi-port  is  Mar  del  Plata,  called  the  Newport 
of  South  America.  This  is  an  extremely  fashionable  and 
expensive  seaside  resort  about  two  hundred  and  fifty 
miles  from  Buenos  Aires,  having  every  up-to-date 
requisite  for  such  a  resort  for  the  wealthy  residents  of 
the  cities  —  all  on  the  grandest  scale. 

Another  of  the  rapidly  growing  ports  is  Bahia  Blanca. 
This  is  about  three  hundred  miles  south  of  Buenos 
Aires,  and  is  the  outlet  for  northern  Patagonia.  It  has 
a  population  of  fifty  thousand.  Here  great  docks  and 
elevators  have  been  built,  as  in  the  other  cities.  Bahia 
Blanca  is  becoming  an  important  export  center  for 
grains,  cattle,  sheep,  and  their  products.  Its  climate 
is  more  temperate  than  that  of  any  of  the  other  large 
cities.  In  fact,  the  region  thereabout  is  said  to  be  too 
cool  for  raising  good  corn. 

But  of  all  the  ports,  Rosario  is  next  in  importance  to 
Buenos  Aires.    This  is  a  city  about  189  miles  up  the 


226  THE  FUTURE  OF  SOUTH  AMERICA 

Parana  River  from  Buenos  Aires,  and  leads  that  port  jj 

in  the  export  of  grain.  It  has  a  population  of  probably 
two  hundred  and  fifty  thousand,  and  has  fine  public 
buildings,  beautiful  stores,  and  parks.  On  the  map, 
Rosario  seems  to  be  an  inland  city,  but  it  really  has  all 
the  appearance  of  a  great  port.  There  are  large  docks, 
elevators,  railway  terminals,  and  everything  that  goes 
with  a  big  city.  In  fact,  Rosario  bears  the  same  rela- 
tion, in  many  ways,  to  Buenos  Aires  that  Chicago 
bears  to  New  York.  Large  ships  go  direct  from  Rosa- 
rio, loaded  with  grain  and  cattle,  to  all  the  important 
ports  of  Europe.  Being  inland,  the  city  is  hotter  in 
summer  and  cooler  in  winter  than  is  Buenos  Aires; 
however,  the  climate  is  healthful,  and  the  people  have 
considerable  energy.  In  many  ways,  Rosario  presents 
as  good  opportunities  for  making  money  as  any  city  in 
Argentina. 

In  the  extreme  west,  toward  Chile,  Mendoza  is  the 
chief  city  of  importance,  about  six  hundred  and  fifty 
miles  from  Buenos  Aires.  It  was  founded  by  Mendoza 
in  the  middle  of  the  sixteenth  century,  and  was  quite  a 
flourishing  place  when,  in  1861,  it  was  suddenly  de- 
stroyed by  an  earthquake,  causing  a  loss  of  life  of  from 
ten  to  fifteen  thousand.  Now  there  are  two  cities,  the 
older,  and  the  newer  settlement  of  forty-five  thousand 
inhabitants,  with  fine  public  buildings  and  a  profusion 
of  trees  bordering  its  wide,  clean,  and  well-paved  streets. 
Irrigation  is  easy,  from  the  Mendoza  and  two  smaller 
streams,  and  has  been  skillfully  used,  not  only  to  beau- 
tify the  city,  but  to  render  fertile  a  large  tract  of  land 
around  it.  There  are  streams  running  even  along  some 
of  the  streets,  and  the  region  is  especially  suited  for  the 
culture  of  the  grape.    Great  fortunes  have  been  made 


ARGENTINA  *         227 

in  these  vineyards  and  many  opportunities  still  exist. 
It  is  said  that  an  economical  Italian  family  can  live  on 
the  returns  from  a  two  and  one  half  acre  tract  of  land. 
Wine  making  is  the  chief  industry,  and  some  of  the  wines 
from  here  have  received  many  medals  at  European  ex- 
positions. jNIost  of  the  workmen,  as  well  as  the  proprie- 
tors, are  Italians,  and  they  have  modern  and  scientific 
methods  and  appliances.  The  railroad  from  here  to 
Buenos  Aires,  a  distance  of  six  hundred  and  fifty  miles, 
runs  for  hundreds  of  miles  without  a  curve  or  a  rise  or 
a  bridge.  This  is  possibly  the  widest  perfectly  level 
plain  in  the  world. 

Another  inland  city  is  Santa  F6,  the  capital  and 
center  of  the  province  of  Santa  Fe,  which  is  one  of  the 
richest  of  the  Argentine  provinces.  The  city  has  a  pop- 
ulation of  about  forty-eight  thousand.  The  price  of 
good  land  here  is  about  forty  dollars  an  acre,  compared 
with  twenty  dollars  an  acre,  its  price  back  of  Bahia 
Blanca,  and  seventy-five  dollars  an  acre,  the  price 
at  which  it  sells  within  a  hundred  miles  of  Buenos 
Aires. 

I  gave  considerable  attention  while  in  Buenos  Aires 
to  the  study  of  land  values.  I  found  that  in  1907-1909 
lands  were  booming,  and  prices  were  higher  than  exist 
in  the  United  States.  Since  then,  there  has  been  a 
drop  of  thirty  to  forty  per  cent.,  so  that  prices  now  — 
although  perhaps  not  low  —  are  reasonable.  In  fact, 
I  believe  that  if  a  man  with  capital  is  willing  to  go  to 
Argentina  and  live,  he  would  do  well  to  invest  in  land. 
Real  estate  and  mortgages  are  still  the  standard  in- 
vestments of  the  Argentines.  They  buy  no  stocks,  and 
the  only  bonds  which  appeal  to  them  are  the  six  per 
cent,  cedulas,  which  are  the  mortgage  loan  bonds  of  the 


228  THE  FUTURE  OF  SOUTH  AMERICA 

government  bank.  These  cedulas  often  offer  one  of  the 
best  opportunities  for  making  money  in  Argentina. 

A  fine  side  trip  from  Buenos  Aires  is  up  the  Parana 
and  Paraguay  rivers.  One  may  travel  all  the  way  to 
Asuncion,  the  capital  of  Paraguay,  a  week's  trip,  in  the 
same  commodious  steamer,  or  may  go  partly  by  rail. 
The  river  is  so  wide  that  for  nearly  the  whole  journey 
only  one  bank  is  visible.  Some  people  visit  the  great 
Iguassu  Falls  on  the  Parana.  In  order  to  get  there  now, 
one  must  use  small  boats,  or  ride  mule  back,  but  good 
roads  are  in  building,  and  it  would  not  be  surprising 
if  automobiles  reached  the  falls  before  many  years. 
From  these  faUg,  one  may  see  three  countries,  as  they 
are  located  near  the  point  where  Argentina,  Paraguay, 
and  Brazil  meet.  They  are  fifty  feet  higher  than  Niag- 
ara, have  a  lateral  extent  twelve  hundred  and  fifty 
feet  greater,  and  are  in  the  midst  of  a  primeval  forest. 

The  exports  of  Argentina  consist  of  cattle,  hides, 
sheep,  wool,  and  agricultural  products,  especially  wheat, 
corn,  and  linseed.  For  the  meats,  there  are  immense 
freezing  plants  in  Buenos  Aires,  one  of  which  has  sixty 
miles  of  ammonia  pipe.  The  great  slaughter  houses 
have  all  the  most  modern  humane  methods  in  use. 

In  forming  an  estimate  of  the  present  and  prospective 
resources  of  Argentina,  it  is  necessary  to  realize  that 
the  country  possesses  four  elemental  conditions  of 
national  greatness,  namely,  wealth  of  fertile  territory, 
giving  power  of  production;  wealth  of  seacoast,  giving 
power  of  distribution;  a  temperate  climate;  and  an 
industrious  people.  Owing  to  the  length  of  the  coun- 
try, it  has  a  varied  climate  suited  to  the  production  of  a 
long  list  of  commodities  for  which  there  is  a  constant 
and  growing  demand  all  over  the  world.    On  the  other 


ARGENTINA  229 

hand,  there  are  not  great  extremes  of  heat  and  cold,  for 
the  nearness  of  the  ocean  exerts  a  tempering  mfluence. 
The  industrious  trait  in  the  people  is  due  to  the  fact 
that  the  country  has  been  settled  largely  by  a  class  of 
foreigners  noted  for  frugality  and  industr}',  sixty  per 
cent,  of  the  immigration  into  the  Argentine  having  been 
from  Italy.  In  addition  to  the  natural  advantages,  there 
has  been  a  great  influx  of  foreign  capital.  In  spite  of  the 
fact  that  some  of  these  investments  may  have  been 
unwise,  yet  from  the  Argentine  standpoint  such  invest- 
ments have  been  beneficial.  The  facilities  produced  by 
such  capital  have  remained  in  the  republic,  and  have 
become  part  of  "the  tools  of  trade  by  which  the  people 
may  reach  a  higher  plane  of  development  and  a  greater 
volume  of  production." 

The  first  impression  received  by  the  close  student  of 
conditions  is  one  of  surprise  that  so  small  a  proportion 
of  the  natural  resources  has  yet  been  exploited.  For 
instance,  only  about  one  twentieth  of  the  area  avail- 
able for  crops  is  as  yet  under  tillage.  To  balance  this, 
in  a  measure,  we  find  greater  proportionate  develop- 
ment in  certain  provinces  where  wealth  and  energy 
have  concentrated,  as  for  instance  in  Buenos  Aires. 
If  other  sections  can  be  granted  equal  loans  by  capital- 
ists, Argentina  may  surely  be  expected  to  take  very 
high  rank  among  the  producing  and  exporting  countries 
of  the  world. 

Farmers  here  are  perhaps  more  generally  prosper- 
ous than  in  any  other  part  of  the  world,  yet  they  have 
two  enemies,  either  of  which  may  ruin  the  crops  and 
take  away  all  the  profits  for  the  year.  One  is  drought, 
for  a  rainfall  below  the  average,  in  a  country  where  the 
normal  is  barely  sufficient,  means  scanty  crops  and  a 


230  THE  FUTURE  OF  SOUTH  AMERICA 

loss  of  cattle.  The  other  danger  is  from  the  locusts, 
which  sometimes  come  in  such  great  swarms  as  to  be 
irresistible.  The  newspapers  herald  their  approach,  so 
that  all  may  try  to  fight  them.  It  is  possible  to  do 
something  to  check  them  when  they  are  on  the  ground, 
but  when  in  flight  nothing  can  stop  them. 

Although  twenty  years  ago  the  cattle  products 
amounted  to  the  largest  total,  and  agriculture  came 
second,  in  the  proportion  of  about  two  to  one,  yet  now 
these  two  industries  have  changed  places.  The  change 
is  due  in  large  measure  to  the  opening  up  of  the  coun- 
try by  the  numerous  railroads  and  the  consequent 
bringing  under  cultivation  of  large  tracts  of  land  either 
formerly  used  for  grazing  or  not  settled  at  all.  In  each 
of  the  three  great  agricultural  products  —  wheat,  corn, 
and  linseed — Argentina  is  now  in  the  front  rank  of  pro- 
ducing countries.  Great  quantities  of  alfalfa,  tobacco, 
rice,  grapes,  barley,  and  oats  are  also  raised,  and  flax  to 
some  extent.  In  the  north,  or  semi-tropical  regions, 
sugar,  mandarins,  oranges,  olives,  and  other  fruits  are 
grown.  Yerha  mate,  or  Paraguay  tea,  is  cultivated  in 
considerable  quantities. 

Though  the  increase  in  livestock  has  been  great,  yet 
the  limit  of  the  ranching  area  has  not  been  reached. 
The  export  of  meat  received  a  great  stimulus  from  the 
introduction  of  systems  of  cold  storage  and  transport, 
and  now  an  enormous  amount  of  European  and  North 
American  as  well  as  Argentine  capital  is  invested  in  this 
industry.  The  Central  Produce  Market  of  Buenos  Aires 
is  the  largest  hide  and  wool  market  in  the  world. 

The  timber  regions  of  the  country,  mostly  in  the 
northern  part,  are  rich  in  structural  and  cabinet  woods. 
In  the  province  of  Santiago  del  Estero,  eighty  per  cent. 


ARGENTINA  231 

of  the  area  is  filled  with  such  forests,  and  over  two 
hundred  saA\Tiiills  are  now  engaged  in  making  lumber. 
The  quebracho  is  the  most  valuable,  and  others  are 
tipa,  titane,  curupuy,  lignum-vitae,  algaroba,  and  nau- 
duba3^  The  opening  of  the  forests  is  greatly  assisted 
by  the  large  navigable  rivers  which  penetrate  the 
section. 

Mineral  resources  of  the  republic  must  be  classed 
rather  as  probable  sources  of  wealth  than  as  actual  con- 
tributors, at  present.  Although  mining  was  carried  on 
in  the  very  early  history  of  the  country,  and  gold,  silver, 
copper,  and  borax  have  been  found  in  small  quantities, 
yet  this  industry  amounts  to  nothing  compared  with  its 
possibilities  in  other  South  American  countries.  There 
is  also  a  lack  of  coal,  although  some  claim  this  to  be  on 
account  of  the  fact  that  the  railroads  have  been  extended 
rather  for  the  benefit  of  the  agricultural  lands  than 
into  the  regions  of  mineral  deposits.  Antimony,  lead, 
tin,  bismuth,  and  sulphur  are  also  found,  and  petro- 
leum has  lately  been  discovered  in  sufficient  quanti- 
ties to  pay  for  working.  There  are  four  large  salt  lakes 
in  the  province  of  Rio  Negro  which  are  now  being 
worked  extensively  by  an  incorporated  salt  company. 
However,  Argentina  has  now  practically  no  opportuni- 
ties for  money  making  from  mining. 

As  regards  manufacturing,  this  industry  is  carried  on 
chiefly  along  the  line  of  converting  raw  products  of  the 
fields  into  finished  and  half-finished  products.  Here 
again  the  lack  of  coal  and  the  non-existence  of  rivers 
furnishing  water  power  of  quantity  hinders  the  growth 
of  great  manufacturing  interests.  However,  some 
native  manufacturing  of  blankets,  rugs,  ropes,  laces, 
embroideries,  etc.,  exists  and  adds  a  little  to  the  wealth- 


232  THE  FUTURE  OF  SOUTH  AMERICA 

producing  power  of  the  people.  Ostrich  breeding,  bee 
culture,  and  silk  culture  are  also  carried  on  to  a  limited 
extent,  and  might  prove  profitable  investments. 

No  country  has  offered  greater  facilities  for  the  con- 
struction of  railways  than  has  Argentina.  The  surface 
is  almost  everywhere  smooth  and  level,  so  that  they 
may  be  quickly  and  cheaply  built,  and  they  radiate  from 
the  capital,  extending  to  every  part  of  the  country  ex- 
cept the  wilderness  of  Gran  Chaco  in  the  north  and  the 
wastes  of  Patagonia  in  the  south.  The  central  part  of 
the  republic,  within  three  hundred  miles  of  Buenos 
Aires,  is  as  thickly  marked  with  steel  rails  as  is  the 
State  of  Ohio.  Thus  far,  the  capital  for  these  railroads 
has  come  wholly  from  abroad,  and  mostly  from  Eng- 
land. The  control  of  these  railroads  has  therefore  given 
the  English  great  help  in  selling  goods  and  in  securing 
the  respect  of  the  country. 

It  is  now  believed  that  England  and  the  other  Euro- 
pean countries  will  not  again  be  able  to  supply  capital 
for  some  years.  This  will  give  the  people  of  the  United 
States  a  great  opportunity  to  secure  concessions  for 
railway  building,  the  erection  of  elevators  and  the  like, 
which  have  heretofore  gone  to  the  English.  Moreover, 
if  we  are  to  gain  a  foothold  in  South  America,  we  must 
accept  these  opportunities.  To  sell  goods  in  Argentina, 
we  must  invest  money  there.  I  am  tired  of  hearing  of 
the  opportunities,  but  of  seeing  no  more  evidence  on 
the  part  of  our  bankers  of  willingness  to  invest  there. 

In  addition  to  the  railways,  there  are  many  waterways 
in  the  navigable  rivers  of  the  country.  The  Parana, 
Paraguay,  and  Uruguay,  with  their  branches,  are  deep 
enough  for  quite  large  steamers  for  hundreds  of  miles. 
South  of  the  Rio  de  la  Plata  are  the  Rio  Colorado,  Rio 


ARGENTINA  233 

Negro,  Chubut,  Deseado,  and  others,  the  largest  being 
the  Rio  Negro,  which  is  navigable  for  six  hundred 
miles  from  the  coast.  There  are  regular  coast  lines  from 
Buenos  Aires  to  many  of  these  river  cities.  Austrian, 
Belgian,  Brazilian,  Spanish,  British,  Danish,  Dutch, 
French,  German,  Italian,  and  Swedish  steamers  arrive 
and  depart  regularly  from  the  ports  of  Argentina  to  all 
quarters  of  the  earth.  There  are  fifty  lines  with  agen- 
cies in  Buenos  Aires.  During  an  average  j'ear,  more 
than  one  hundred  and  thirty-five  thousand  vessels  reg- 
ister at  all  ports  of  the  republic,  carrying  fifty  million 
tons,  of  which  forty  thousand  vessels  with  twenty 
million  tons  usually  report  at  Buenos  Aires.  Regular 
passenger  service  is  maintained  to  the  various  ports  of 
Europe,  and  steamers  arrive  or  leave  several  times  a 
week.  To  New  York,  while  there  are  not  so  many 
steamers,  opportunity  is  ofifered  at  least  once  in  a  fort- 
night for  the  traveler  to  take  a  direct  boat.  Few,  how- 
ever, carry  the  American  flag;  and  until  1914,  no 
passenger  boats  whatever  carried  the  American  flag 
between  the  United  States  and  Argentina. 

There  can  be  no  more  logical  argument  in  support  of 
Argentina's  claim  to  commercial  importance  than  the 
fact  that  its  foreign  trade,  exports  and  imports,  amounts 
in  all  to  the  magnificent  annual  total  of  over  nine  hun- 
dred million  dollars.  The  cities  of  the  interior  are 
growing  rapidly,  and  there  is  everywhere  a  demand  for 
capital  to  give  these  to^\^lS  modern  advantages.  The 
amount  of  money  required,  not  only  to  do  this,  but 
also  to  improve  the  vast  possibilities  of  her  plains  and 
the  mineral  wealth  of  her  mountains,  should  be  supplied 
in  a  consideraljle  part  by  the  United  States.  Money  is 
wanted  for  the  establishment  of  banks;  for  the  floating 


234  THE   FUTURE   OF   SOUTH   AMERICA 

of  government  and  industrial  loans;  for  the  building 
and  extending  of  railroads;  for  the  construction  of  elec- 
tric, rail,  and  street-car  lines;  for  electric-lighting 
plants,  water  works,  sewage  systems;  and  for  many 
other  things  that  combine  to  make  a  general  onward 
movement  for  Argentina.  Moreover,  all  these  things 
offer  good  opportunities  for  making  money,  if  one  will 
work  conservatively,  and  with  good  people. 

In  the  chapters  relating  to  the  West  Coast,  it  was 
suggested  that  the  great  handicap  of  that  region  is  the 
people.  Colombia,  Ecuador,  and  perhaps  Venezuela 
cannot  amount  to  much  until  they  have  an  entirely  dif- 
ferent class  of  inhabitants.  Peru,  and  even  Chile,  are 
greatly  in  need  of  immigration.  The  greatest  resources 
in  the  world  are  useless  without  brains,  energy,  and 
ambition  to  work  them. 

The  people  of  Argentina  are  progressive  and  honest. 
Although  they  number  only  about  the  population  of 
New  York  State,  they  are  an  asset  of  the  country  in- 
stead of  a  liability.  Hence,  when  considering  going  to 
Argentina,  do  not  worry  about  the  people.  The  Argen- 
tines are  our  equals.  Don't  forget  this  when  attempting 
to  make  money  in  their  country. 

Also  remember  that  we  must  win  their  friendship  as 
well  as  their  confidence.  We  must  treat  them  as  true 
brothers.  They  naturally  look  upon  us  as  foreigners, 
as  we  look  upon  the  Hebrews,  Germans,  and  Spanish 
who  come  to  our  country.  Therefore,  to  win  their 
esteem,  we  must  be  exceedingly  honest  and  kind.  Our 
salesmen  must  tell  the  truth.  Our  catalogues  must  not 
misrepresent.  We  must  send  just  the  kind  of  goods 
ordered.  Remember  that  we  once  had  this  South 
American  trade,  but  lost  it  through  neglect  and  mis- 


ARGENTINA  235 

representation.  Again  the  opportunity  is  open  to  us 
for  making  money  in  Argentina.  It  is  up  to  us  to  im- 
prove this  opportunity.  The  first  step  is  to  understand 
the  people;  learn  to  trust  them,  serve  them,  and  love 
them. 

Until  thirty  or  forty  years  ago,  the  population  of 
Argentina  was  almost  entirely  of  Spanish  stock.  Then, 
as  the  pampas  were  developed,  there  was  need  of  labor- 
ers, some  of  whom  came  from  Spain,  but  more  from 
Italy.  The  latter  have  come  from  all  parts  of  their 
country,  but  those  from  tlie  north  of  Italy  take  to  farm 
work,  while  those  from  the  southern  provinces  stay  in 
the  towns,  working  about  the  railroads  and  wharves. 
As  in  the  United  States,  the  best  immigrants  are  the 
natives  of  northern  Italy,  hard-working  men  who  are 
honest  and  very  economical.  Many  of  them  come  out 
for  the  harvesting  weeks  of  December,  January,  Feb- 
ruary, and  March,  returning  home  to  reap  their  own 
harvest  in  the  Italian  summer  and  autumn,  which  is 
six  months  later. 

The  ranch  work  of  catching  and  taming  wild  cattle 
and  horses,  and  then  of  caring  for  the  herds,  has  devel- 
oped a  type  of  frontiersman  similar  to  the  cowboys 
of  our  western  plains.  The  Gaucho,  as  he  is  called,  is 
still  depended  upon  to  handle  the  animals.  He  is  an 
expert  horseman,  never  dismounting  from  his  animal, 
except  at  night,  and  then  sleeping  near  it.  They  also 
are  said  to  be  honest  and  sturdy  people.  The  rural 
population  consists  of  two  classes,  the  rich  landholders 
and  the  laborers.  There  seems  to  be  no  middle  class 
like  our  American  farmers.  When  the  Argentine  col- 
onists came,  a  century  ago,  they  brought  with  them  the 
idea  of  European  feudalism,  and  they  took  as  much 


236  THE  FUTURE  OF  SOUTH  AMERICA 

land  as  they  wanted,  so  that  the  country  is  one  of  great 
estates,  the  average  holding  even  now  being  about  five 
square  miles.  The  descendants  of  these  Spanish,  Eng- 
lish, and  Irish  now  hold  these  great  estates. 

There  is  no  doubt  that  Argentina  has  the  best  gov- 
ernment of  any  of  the  Latin- American  countries.  The- 
oretically, it  has  one  of  the  very  best  governments  in 
the  world.  There  are  several  features  of  the  Argentine 
constitution  and  methods  which  could  be  adopted  with 
great  advantage  by  the  people  of  the  United  States. 
This  applies  not  only  to  government,  but  also  to  other 
things.  For  instance,  in  addition  to  numbering  the 
surface  street  cars,  so  as  to  show  quickly  the  route  to 
those  who  cannot  read  Spanish,  the  interior  of  the 
subway  is  numbered  like  the  buildings  in  the  streets 
above.  This  is  a  very  simple  but  useful  plan  that  could 
be  easily  adopted  by  New  York,  Philadelphia,  Boston, 
and  other  North  American  cities. 

Certain  Englishmen,  Germans,  and  Spaniards  in  Ar- 
gentina claim  that  the  country's  government  is  unstable 
and  full  of  graft;  yet  certain  of  our  own  countrymen 
there  tell  a  better  story.  Doubtless  the  government  is 
extravagant,  and  sometimes  careless,  from  one  point  of 
view;  but  from  their  point  of  view,  we  also  are  very 
extravagant.  Doubtless  the  government  of  Argentina 
is  in  the  hands  of  comparatively  few  people,  and  is  not  a 
democracy,  as  we  understand  the  term.  Argentina  has 
seen  many  revolutions,  and  may  witness  more  in  years 
to  come.  On  the  other  hand,  as  a  student  of  interna- 
tional affairs  once  said  to  me:  "Not  one  tenth  as  many 
people  lose  their  lives  in  a  South  American  revolution 
as  have  been  killed  in  Colorado  and  other  strikes  in  the 
United  States."    In  fact,  the  South  American  actually 


ARGENTINA  237 

feels  that  his  government  is  more  stable  than  ours. 
Certainl}'  they  have  shown  more  self-control  regarding 
foreign  affairs.  The  South  American  revolutions  are 
practically  bloodless;  they  do  not  cost  as  much, 
nor  disturb  business  as  much,  as  do  our  presidential 
elections. 

Of  course  Argentina  is  a  young  country,  and  without 
doubt  the  government  is  less  stable  than  most  people 
in  the  United  States  realize.  On  the  other  hand,  I  am 
sure  that  the  leaders  in  Argentina  appreciate  their 
faults  and  dangers,  as  well  as  do  their  critics,  and  are 
making  great  efforts  to  eradicate  them.  I  do  not  dare 
to  say  too  much,  as  I  am  apt  to  judge  a  country  by  its 
statistical  work,  and  in  its  statistical  work  Argentina 
is  one  of  the  leaders  of  the  world.  However,  I  must  say 
that  the  limited  opportunity  given  me  to  study  this 
country  caused  me  to  believe  in  its  government  as  well 
as  in  its  people.  Certainly  it  leads  all  other  Latin- 
American  countries,  and,  all  things  considered,  is  nearly 
on  a  par  wnth  our  owti,  excepting  in  connection  with 
the  integrity  of  the  vote. 

Argentina  is  one  of  the  five  American  republics  which 
have  adopted  the  federal  form  of  government,  the  others 
being  the  United  States  of  America,  the  United  States 
of  Brazil,  the  United  Mexican  States,  and  the  United 
States  of  Venezuela.  All  the  other  republics  of  America 
have  a  unitary  form  of  political  organization.  The 
constitution  of  the  Argentine  nation,  dating  from 
May  1,  1853,  and  finally  sanctioned  September  25, 
1860,  with  some  later  emendations,  is  the  one  in  force. 
It  provides  for  the  three  usual  branches  of  government 
—  legislative,  executive,  and  judicial.  The  legislative 
power  lies  in  the  National  Congress,  consisting  of  the 


238  THE  FUTURE  OF  SOUTH  AMERICA 

Senate  and  Chamber  of  Deputies,  the  former  with 
thirty,  the  latter  with  one  hmidred  and  twenty  members. 
Senators  are  elected  by  the  legislatures  of  the  provinces 
(States)  and,  in  the  federal  district,  by  a  special  body 
of  electors;  two  from  each  province  and  two  from  the 
federal  district;  their  term  is  for  nine  years,  one  third 
retiring  —  selection  being  made  by  lot  —  every  three 
years;  there  is  a  property  qualification  attached  to  the 
senatorship.  Deputies  are  elected  by  direct  popular 
vote,  one  for  every  thirty-three  thousand  inhabitants, 
for  a  term  of  four  years,  the  chamber  being  removed 
by  halves  every  two  years. 

The  President  of  the  Republic  of  Argentina  and  the 
Vice-President  are  elected  indirectly,  as  in  the  United 
States  of  America,  for  a  term  of  six  years,  neither  being 
eligible  for  an  immediately  succeeding  term.  The 
Vice-President  is  the  presiding  officer  of  the  Senate. 
The  President  has  a  salary  of  over  thirty  thousand  dol- 
lars gold.  In  his  executive  authority  he  is  assisted  by 
a  cabinet  of  eight  ministers,  appointed  by  him.  These 
are:  Minister  of  the  Interior;  Minister  of  Foreign 
Affairs;  Minister  of  the  Treasury;  Minister  of  Justice 
and  Public  Instruction;  Minister  of  War;  Minister  of 
Marine;  Minister  of  Agriculture;  Minister  of  Public 
Works. 

There  is  not  so  much  that  is  romantic  and  exciting 
about  the  history  of  this  southern  republic  as  was  con- 
nected with  the  conquests  of  Pizarro  in  Peru.  The 
Spanish  navigator,  Juan  de  Solis,  in  search  of  a  passage 
to  the  Pacific  Ocean,  was  the  first  European  to  discover 
Rio  de  la  Plata,  in  the  year  1516.  Sebastian  Cabot  en- 
tered the  river  in  1525,  and  gave  it  the  name  it  still 
retains.    The  viceroyalty  of  La  Plata  (then  including 


ARGENTINA  239 

Argentina,  Bolivia,  Paraguay,  and  Uruguay  of  to-day) 
was  defined  in  1776,  its  first  viceroy  being  Pedro  de 
Zeballos,  appointed  in  1777.  The  Declaration  of  Inde- 
pendence by  the  people  of  Buenos  Aires  was  made  on 
May  25,  1810,  three  great  leaders  in  the  movement 
being  General  San  Martin,  General  Belgrano,  and  Ad- 
miral Brown.  A  congress  held  July  9,  181G,  at  Tucu- 
man,  declared  the  independence  of  the  "  Provincial 
Unidas  del  Rio  de  la  Plata"  (United  Provinces  of  the 
Plata  River).  In  1860  the  country  adopted  the  name 
by  which  it  is  now  known,  "La  Nacion  Argentina." 

Merchants  disagree  as  to  the  question  of  South  Amer- 
ican credits;  that  is,  whether  or  not  our  manufacturers 
will  get  paid  for  goods  which  they  ship  there.  There  is 
no  question  that  the  demand  exists  in  South  America 
for  our  manufactm-ed  goods,  and  that  an  assured  supply 
of  such  goods  exists  in  this  country,  which  we  could 
easily  ship  down  there;  but  there  seems  to  be  much 
doubt  as  to  the  credit  situation  in  South  America.  The 
following  statement  by  an  Argentina  merchant  illus- 
trates their  point  of  view: 

"Before  your  people  from  the  States  can  hope  to 
secure  much  more  business  down  here,  you  must 
cither  change  your  methods  of  doing  business  or  else 
start  banks  in  South  America.  Your  manufacturers 
are  in  the  habit  of  simply  manufacturing.  They  send 
customers  of  their  own  country  around  the  corner  to 
get  their  banking  done.  This  works  well  in  a  country 
like  yours,  with  over  twenty  thousand  banks,  and  where 
there  is  sure  to  be  a  bank  around  every  corner.  Here 
in  South  America,  however,  business  is  done  in  a  differ- 
ent way.  The  great  English,  German,  and  French 
manufacturers  are  both  merchants  and  bankers.    They 


240  THE   FUTURE  OF  SOUTH   AMERICA 

have  both  sold  us  the  goods  and  have  given  us  the  bank- 
ing facihties  to  buy  these  goods. 

"It  makes  us  tired  down  here  to  have  you  continually 
talking  about  our  demands  for  long  credits.  We  don't 
ask  so  much  credit  as  do  your  customers  in  the  States. 
Moreover,  we  are  much  more  careful  to  meet  our  drafts 
and  other  obligations  when  due  than  are  your  customers 
to  pay  their  notes  at  your  home  banks.  The  difference 
is  right  here.  Assume  that  you  have  a  mill  in  Massa- 
chusetts, and  I  am  a  Boston  jobber  to  whom  you  desire 
to  sell  goods.  I  ask  you  what  are  your  terms,  and  you 
tell  me  thirty  days.  I  reply  that  I  cannot  turn  over 
the  goods  in  thirty  days,  but  that  it  will  take  six  months. 
Do  you  refuse  to  sell  me?  No!  You  send  me  to  a  bank 
of  which  you  are  a  director,  and  they  loan  me  for  six 
months  the  necessary  money  to  buy  goods  and  pay 
you  within  thirty  days.  To  do  business  down  here 
you  must  start  banks  which  will  do  for  us  in  Buenos 
Aires  what  your  Boston  banks  do  for  your  Boston  cus- 
tomers. In  addition,  let  me  tell  you  that  it  offends  us 
to  be  told  that  our  credit  is  not  worthy  of  such  accom- 
modation. We  don't  need  North  American  banks  sim- 
ply to  do  a  foreign  exchange  business.  We  want  them 
to  finance  our  purchases  of  North  American  goods. 

"Of  course,  the  greatest  profit  to  you  would  be  to  fol- 
low the  English  and  German  system  and  allow  us  the 
credit  direct,  adding  to  your  price  accordingly,  but 
either  method  would  be  satisfactory  to  us.  Only  don't 
be  so  stupid  as  to  think  that  the  English  and  Germans 
do  not  charge  us  for  extending  such  credit.  With 
money  rates  from  twelve  to  eighteen  per  cent,  you  may 
be  sure  that  our  merchants  are  willing  to  pay  consider- 
ably more  for  goods  on  long  credit.    Of  course  we  dare 


ARGENTINA  241 

not  make  you  a  higher  offer  for  fear  you  '11  be  scared  to 
sell  us  at  all." 

Another  view  of  the  trade  question  is  represented  by 
the  following  statement  from  a  leading  merchant: 

"  You  see  that  the  English  and  Germans  understand 
foreign  trade.  It  is  an  art  with  them  the  same  as  the 
killing  of  hogs  and  the  making  of  shoes  is  an  art  with 
the  people  of  your  country.  The  Germans  even  have 
separate  colleges  in  which  to  train  men  for  foreign  trade, 
while  the  Enghsh  inherit  a  love  for  oversea  commerce. 
Your  people  have  been  so  surrounded  by  natural  re- 
sources and  high  tariffs  that  they  have  become  actu- 
ally stupid  as  regards  foreign  trade.  The  English  and 
German  firms  both  try  to  please  us  and  also  to  finance 
our  purchases." 

The  President  of  Argentina,  when  I  visited  South 
America  in  1915,  was  Senor  Victorio  de  la  Plaza,  a  man 
who  has  traveled  extensively  and  who  hved  in  London 
for  many  years.  He  is  the  owner  of  a  great  estancia,  or 
ranch,  in  Argentina,  which  makes  him  a  multi-million- 
aire. When  we,  of  the  United  States,  speak  of  men  of 
great  wealth,  we  tliink  of  mills,  factories,  and  railroads, 
but  it  is  different  in  Argentina.  There  the  great 
"trusts"  are  land  trusts,  and  the  captains  of  industry 
are  ranch  owners. 

The  Government  House  at  Buenos  Aires,  where  I 
met  the  President,  is  as  fine  a  palace  as  exists  in  Amer- 
ica. The  guards  and  servants  are  in  blue  livery,  while 
luxury  pervades  the  place.  The  correspondence  and  in- 
troductions are  extremely  formal,  yet  I  was  given  the 
utmost  freedom  and  no  one  ventured  to  suggest  what 
I  should  talk  about. 

On  being  introduced  to  the  President,  I  began: 


242  THE  FUTURE  OF  SOUTH  AMERICA 

"The  people  of  the  United  States  are  much  interested 
in  your  great  country.  They  know  of  its  wealth  and 
importance,  and  are  anxious  to  do  business  here.  There 
seems  to  be,  however,  a  misunderstanding  about  credits. 
English,  French,  and  even  some  North  American  firms 
doing  business  in  your  country  tell  my  people  at  home 
that  credits  are  unstable  in  Argentina  and  that  it  is 
unsafe  to  invest  American  capital  here.  Will  you  please 
give  to  my  countrymen  a  statement  regarding  this  ques- 
tion of  credit?" 

Whereupon  the  President  squinted  his  eyes  and  an- 
swered : 

"  Conditions  in  Argentina  are  the  same  as  in  the  newer 
parts  of  your  own  country.  If  a  jobbing  house  in  Chi- 
cago desires  to  open  a  branch  house  in  Texas,  it  must 
take  chances.  There  is  no  guarantee  by  any  one  that 
there  will  not  be  some  losses  at  first.  The  best  cus- 
tomers in  Texas  will  naturally  remain  with  the  older  and 
more  estabhshed  firms.  A  new  firm  in  any  locality 
must  always  start  with  the  poorer  customers  and  grad- 
ually obtain  the  better  ones.  When  a  New  England 
manufacturing  concern  starts  a  new  mill  in  your  South, 
it  expects  to  run  at  a  loss  for  a  while;  neither  your  gov- 
ernment nor  your  State  will  guarantee  the  securities. 
Conditions  are  no  better,  and  no  worse,  in  Argentina 
than  in  the  United  States,  considering  the  ages  of  the 
two  nations.  Your  merchants  must  take  a  certain 
chance  and  risk;  but  these  are  no  greater  than  they 
are  continually  taking  in  their  own  country." 

After  leaving  the  President,  it  occurred  to  me  to 
obtain  the  failure  statistics  of  Argentina,  and  compare 
them  with  those  of  the  United  States.  This  comparison 
is  shown  by  the  following: 


ARGENTINA  243 

Failures  m  United  States  Failures  in  Argentina 

1910 $195,223,045  $18,576,125 

1911 189,358,591  26,638,125 

1912 202,085,974  34,619,774 

1913 282,232,584  72,530,307 

1914 344,895,431  180,836,061 

Total  for  5  vears  .    .    $1,213,795,625  $333,200,392 

Average  for  1  year    .         242,759,125  66,640,078 

Failure  in  dollars  per  capita  ....   $2.55  $7.40 

These  figures  suggest  that  perhaps  the  President  of 
Argentina  is  a  better  pohtician  than  statistician.  They 
certainly  show  that  under  the  present  unsatisfactory 
Argentine  laws,  failures  are  very  common  and  risks 
abnormally  large. 

I  think  our  able  United  States  Commercial  Attache 
expressed  the  situation  very  clearly  and  fairly  when  he 
said  to  me,  after  I  had  told  liim  what  the  President 
had  replied: 

"There  are  great  opportunities  here,  yet  nearly  all 
have  been  tapped;  there  are  many  chances  to  make 
money  here,  but  nearly  all  have  been  tried.  One  can- 
not come  to  Argentina  and  pick  up  gold  in  the  streets. 
Time  and  money  must  first  be  spent  on  development 
work  before  fruit  can  be  gathered.  Moreover,  the 
fruit  will  not  gather  itself.  Some  one  must  do  the 
picking.  Also,  if  the  fruit  is  to  keep,  it  must  be  picked 
carefully  and  packed  honestly." 

This  President  of  Argentina  believes  that  the  real 
question  is  whether  or  not  the  merchants  and  manu- 
facturers of  the  United  States  are  willing  to  do  their 
part  and  give  the  same  attention,  capital,  and  treat- 
ment to  trade  in  South  America  as  to  trade  in  North 
America.     If  they  will,  the  problem  is  largely  solved, 


244  THE  FUTURE  OF  SOUTH  AMERICA 

but  otherwise  not.  The  old  rule,  "Never  venture, 
never  win,"  appHes  equally  to  both  continents.  The 
reason  why  the  Germans  and  Italians  have  done  well 
in  Argentina  is  because  they  are  willing  to  venture  in 
order  to  win.  First,  they  take  a  venture  by  going  to 
settle  there;  they  do  not  just  make  a  flying  visit  as  we 
do.  Secondly,  they  take  a  venture  by  investing  their 
money  there;  they  are  not  suspicious  of  the  Argen- 
tines as  are  we.  Finally,  they  venture  by  marrying  an 
Argentine  girl  —  and  this  last  venture  is  the  most  im- 
portant of  all.  We  North  Americans  will  never  succeed 
there  until  we  are  willing  to  intermarry  with  them. 
When  our  boys  will  marry  their  girls,  and  our  girls  will 
marry  their  boys  —  then  we  shall  be  recognized  as 
their  friends.  This  is  the  first  real  venture  we  must 
make.  Some  say  that  commerce  follows  the  flag; 
others  say  that  it  follows  the  banks;  but  there  they 
beheve  it  follows  love  and  marriage. 

I  next  asked  the  President  what  the  people  of  the 
United  States  must  do  in  order  to  secure  a  foothold  in 
Argentina,  and  he  answered  at  once: 

"Your  countrymen  must  invest  capital  down  here 
if  they  intend  to  compete  with  the  English  and  other 
nations.  Now,  we  need  capital.  We  are  a  very  rapidly 
growing  country,  and  we  have  many  uses  for  money. 
It  is  natural  that  we  should  feel  the  most  indebted  to 
the  people  who  have  supplied  us  with  the  most  capital. 
Up  to  the  present  time,  England  has  led  in  this  respect. 
Not  only  has  she  supplied  us  with  many  times  more 
money  than  has  any  other  nation,  but  she  has  furnished 
to  us  more  than  she  has  to  any  other  nation.  Statistics 
suggest  that  England  prefers  our  securities  to  those  of 
even  your  own  country. 


ARGENTINA  245 

"The  following  figures,"  said  the  President,  "cover- 
ing one  half  of  a  year,  show  you  why  we  love  England. 
These  figures  show  the  destination  of  new  capital 
issued  in  the  United  Kingdom  during  six  months;  and 
the  proportions  for  any  other  six  months  will  show  up 
the  same.' 

Argentina $64,046,000 

Russia 61,220,500 

United  States 43,995,500 

Brazil      26,507,500 

Belgium      24,512,500 

Austria  Hungary 20,881,000 

Mexico 9,115,000 

ChUe 8,725,500 

Greece 7,781,500 

China      3,500,000 

Sweden 2,442,500 

Philippine  Islands 1,800,000 

Turkey 970,000 

Cuba 200,000 

Dutch  East  Indies 163,000 

Germany  and  possessions 63,000 

Other  European  countries 3,797,000 

Other  South  American  RepubUcs      6,211,000 

"The  English  have  ventured,  and  have  won.  If  you 
will  venture,  you  can  win  hkewise.  But  you  can  never 
win  by  refusing  to  buy  Argentine  securities,  by  refrain- 
ing from  investing  money  m  Argentina,  or  by  asking 
for  cash  in  advance." 

Then  the  President  checked  himself,  and  stopped 
talking.  I  rather  think  he  wanted  to  criticise  us  for 
demanding  cash  in  advance,  and  then  shipping  any 
old  merchandise  to  suit  our  fancy  —  poorly  packed, 
wrongly  addressed,   and  listed  in  yards  and  inches,^ 

'  The  Argentine  children  are  taught  the  metric  system  of 
weights  and  measures,  which  is  almost  universally  used  through- 
out the  world,  with  the  exception  of  England,  United  States, 


246  THE  FUTURE  OF  SOUTH  AMERICA 

which  are  as  Greek  to  the  Argentines,  but  he  refrained 
from  any  criticism. 

The  President  referred  only  to  the  Enghsh.  I  have 
been  told  that  he  is  partial  to  the  English,  preferring 
them  to  any  other  foreign  people.  Statistics,  however, 
show  that  during  the  past  few  years  the  Germans  have 
also  invested  large  sums  in  Argentina,  and  are  entitled 
to  as  much  credit  as  the  English.  The  following  story, 
told  to  me  by  one  of  Argentina's  leading  bankers,  illus- 
trates German  methods: 

Some  people  secured  a  franchise  for  a  street  railway 
in  an  important  Argentine  city.  Knowing  of  our  New 
York  and  Philadelphia  traction  magnates,  the  promo- 
ters offered  the  proposition  to  capitahsts  in  those  cities. 
The  United  States  financiers,  however,  had  never 
been  to  Argentina.  They  laughed  at  the  idea  of  this 
South  American  city  wanting  such  a  system,  so  they 
turned  it  down.  The  Argentines  then  appealed  to  Ger- 
many. The  Germans  accepted  the  offer  at  once.  They 
not  only  built  the  property,  but  they  built  it  quickly 
and  finely.  It  is  the  most  attractive  system  that  I  ever 
have  seen.  It  is  far  ahead  of  anything  in  New  York, 
Philadelphia,  Boston,  or  any  other  large  North  Ameri- 
can city.  It  is  equipped  with  German  machinery.  It 
is  a  great  big  advertisement  for  Germany  every  day. 
It  has  resulted  in  selhng  scores  of  millions  of  dollars 
worth  of  other  German  electrical  machinery.  Even 
our  own  United  States  corporations  are  now  buying 
their  electrical  machinery  for  use  in  South  America 
from  Germans.    The  Germans  ventured,  and  they  won. 

Turkey,  and  China.  Why  we  do  not  discard  yards,  inches, 
bushels,  and  quarts,  and  substitute  the  decimal  metric  system 
therefor,  is  incomprehensible  to  all  foreign  buyers. 


ARGENTINA  247 

I  then  took  the  liberty  of  going  a  step  farther  and  of 
speaking  frankly  to  the  President  as  follows: 

"Mr.  President,  I  am  told  that  the  real  trouble  with 
Argentine  credits  Kes  not  with  Argentina,  but  rather 
is  due  to  the  fact  that  we  North  Americans  are  not  feared 
by  your  people  as  are  the  English  and  Germans.  For 
instance,  I  am  told  that  if  one  of  your  merchants  owes 
fifteen  thousand  pounds  in  equal  amounts  to  an  Eng- 
lishman, a  German,  and  a  United  States  citizen,  and 
the  Argentine  has  only  ten  thousand  pounds,  he  will 
pay  the  Englishman  first  and  get  his  cash  discount, 
and  the  German  next.  The  result  is  that  he  has  no 
money  left  with  which  to  pay  my  countryman.  Is  there 
any  truth  in  such  a  report  as  this?" 

Of  course  the  President  did  not  answer  my  question, 
and  it  was  not  to  be  expected  that  he  would.  I  was 
told,  however,  by  others  connected  with  the  govern- 
ment that  if  he  had  answered,  he  would  have  ac- 
knowledged that  it  is  the  "big  stick"  poHcy  which 
tells.  This  brings  up  a  very  interesting  question.  Let 
me  explain. 

It  is  generally  admitted  that  before  we  can  develop 
a  rich  Latin-American  trade  we  must  do  two  things, 
viz.: 

L  Secure  protection  to  American  capital  invested 
in  Latin  America  in  order  that  we  may  safely  extend 
credits  and  organize  banks. 

2.  Secure  freedom  from  dependence  on  ships,  rail- 
roads, and  cables  of  our  competitors  in  order  that  we 
may  get  equal  and  just  treatment. 

From  talks  with  financiers  I  am  convinced  that  these 
two  things  can  be  secured  in  only  one  of  two  ways, 
either  by  adopting  the  big  stick  and  continuous  foreign 


248  THE  FUTURE  OF  SOUTH  AMERICA 

policy  system  of  the  European  governments,  or  by  in- 
sisting that  banking,  transportation,  cables,  etc.,  used 
for  international  trade  shall  be  under  international 
control  and  protection.  This  does  not  mean  that  the 
nations  of  the  world  need  unite  in  any  sort  of  a  political 
alliance,  but  simply  that  some  inter-nation  be  devised 
whereby  banks,  ships,  etc.,  can  be  operated  under  an 
inter-nation  trade  flag,  if  the  parties  interested  so  de- 
sire. 

Of  course,  the  simplest  method  at  the  moment  would 
be  for  our  government  to  adopt  the  big  stick  and  contin- 
uous foreign  policy,  as  practised  by  European  govern- 
ments; but  certainly  this  is  not  a  democratic  method, 
and  the  leading  South  American  statesmen  do  not  be- 
heve  our  people  will  ever  stand  for  it.  If  this  is  true, 
it  is  a  sure  thing  that  we  shall  be  at  a  distinct  disadvan- 
tage in  playing  the  game  with  the  European  nations 
until  the  other  alternative  —  that  is,  international 
control  and  protection  for  international  investments 
and  trade  —  is  put  into  operation. 

I  next  said:  "Mr.  President,  many  people  come  back 
to  the  United  States  and  talk  about  the  great  money- 
making  possibilities  down  here,  but  they  fail  to  be 
specific.  It  is  hard  to  pin  them  down  to  definite  state- 
ments. Will  you  please  indicate  to  me  along  just  what 
lines  capital  can  be  most  advantageously  invested  here 
at  the  present  time?" 

To  this  question,  the  President  immediately  replied: 

''Argentina  is  an  agricultural  country,  and  is  so  des- 
tined to  be  for  many  years  to  come.  Had  we  coal  or 
water  power,  it  would  at  once  be  possible  to  manu- 
facture here  great  quantities  of  shoes,  textiles,  and  other 
things  for  which  we  have  the  raw  materials.    Under  the 


ARGENTINA  249 

circumstances,  however,  manufacturing  will  develop 
only  very  slowly.  It  is  in  agriculture  and  cattle  rais- 
ing that  the  great  future  of  Argentina  exists." 

The  President  then  referred  me  to  a  pamphlet  which 
had  just  been  published  in  English  by  the  Honor- 
able Ricardo  Pillado,  Director  General  of  Commerce 
and  Industry,  which  contained  a  story  of  Argentina's 
growth  and  present  condition,  and  in  which  he  says: 

"Among  the  principal  items  of  Argentina's  wealth 
stands  forth  the  meat  trade,  transformed  during  the 
last  quarter  of  a  century  by  the  energy  of  the  country, 
the  improving  of  its  stock,  and  the  change  of  the  primi- 
tive methods  of  treating  the  beef  which  constituted 
the  traditional  S3^stem  of  three  centuries  (jerked  beef, 
etc.)  into  the  freezing  and  preserving  of  meats  of  the 
finest  quality.  By  the  most  perfect  methods,  we  get 
the  nutritious  extracts  and  other  products  which  are 
the  result  of  our  improved  industry  and  latest  prog- 
ress. The  gro'U'th  of  this  branch  of  activity''  is  shown 
by  the  fact  that  m  1885,  the  year  in  which  the  frozen- 
meat  system  first  commenced,  all  the  exports  of  meat 
in  its  various  forms  reached  a  total  of  S6, 084,945, 
whereas  now  it  has  increased  to  about  fifty-five  mil- 
lion dollars,  that  is  to  say,  almost  nine  times  the  value 
of  the  annual  sales  when  this  new  method  was  first 
employed.  The  returns  of  the  four  principal  agricul- 
tural products  arc  not  less  interesting." 

In  1904  Argentina  exported  the  following: 

Wheat $66,947,891 

Maize 44,391,196 

Linseed 2S,:^59,923 

OsLia 541,973 

$140,240,983  . 


250  THE  FUTURE  OF  SOUTH  AMERICA 

and  ten  years  later  — 

Wheat $102,631,143 

Maize 112,292,394 

Linseed 49,910,201 

Oats 20,447,278 

$285,281,016 

Readers  must  remember  that  these  products  have 
been  obtained  with  Httle  care  and  unscientific  methods. 
In  fact,  I  was  much  interested  in  a  story  which  Ambas- 
sador Stimson  told  about  a  friend  of  his  who  has  a  very 
successful  estancia  about  three  hundred  miles  from 
Buenos  Aires.  Mr.  Stimson  asked  the  man  how  he 
secured  so  many  more  bushels  per  acre,  so  much  fatter 
cattle,  and  so  much  finer  fruit  than  his  neighbors.  The 
rancher  called  Mr.  Stimson  aside,  and  whispered : 

"  Don't  say  anything  about  it  to  my  competitors  here, 
but  I  subscribe  to  an  old  American  agricultural  jour- 
nal, and  to  some  of  your  government  reports.  They 
keep  me  posted  and  give  me  information  which  my 
neighbors  either  do  not  know  about,  or  else  are  too 
lazy  to  apply." 

Again  the  President  referred  me  to  the  pamphlet 
just  mentioned.    With  a  twinkle  in  his  eye,  he  said: 

"Look  at  these  statistics.  [See  p.  251.]  Does  the 
record  of  the  United  States  production  show  any  such 
gain  as  this?" 

I  tried  to  pin  him  down  to  telling  me  of  other  in- 
dustries than  agriculture  wherein  there  are  good  money- 
making  opportunities;  but  I  did  not  have  much  luck. 
We  could  n't  understand  one  another  perfectly.  He 
seemed  to  think  I  wanted  him  to  name  some  industry 
which  the  government  would  subsidize  or  protect  by 


ARGENTINA 


251 


THE  DEVELOPMENT  OF  ARGENTINE  AGRICUL- 
TURE, 1896-1913 

Cultivated  Areas  in  Hectares* 


Years 

Wheat 

Linseed 

Maize 

Lucem 

Other  Cul- 
tivations 

Total 

1896 

2,500,000 

360,000 

1.400.000 

800,000 

510,000 

5.570,000 

1S97 

2,600,000 

350,000 

1.000,000 

900,000 

522.000 

5,372,000 

1898 

3,200,000 

332,788 

S.'jO.OOO 

1,007,983 

533.000 

5,983,771 

1899 

3.250,000 

355,229 

1,009.000 

1,268,088 

545.000 

6,427,417 

1900 

3,379,749 

607,352 

1,255,346 

1,511.601 

557.000 

7,311,048 

1901 

3,296,066 

782,880 

1,405,706 

1.631.733 

567,000 

7,638.475 

1902 

3.095,343 

1.307,196 

1,801,044 

1.730.163 

580,270 

9,114,616 

1903 

4.420,000 

1,487,000 

2,100,000 

2,172.511 

606,000 

10,685,511 

1&(M 

4.903,124 

1,082.890 

2,287,040 

2.503.384 

648,000 

11,424,438 

1905 

5,675,293 

1.022.782 

2,717,300 

2.983,643 

082,443 

13,081,461 

1906 

5,592,268 

1.020.715 

2,851,300 

3,537.211 

796,099 

13,797,593 

19137 

5,759,987 

1.391.467 

2,719,260 

3.612.000 

1,129,078 

14,612,792 

19<DS 

6,063,100 

1,534,300 

2,973,900 

3,687.200 

1,572,063 

15.830.563 

1909 

5.835,500 

1.455.600 

3,005,000 

4,706.530 

3,772,042 

18.775,672 

1910 

6,253,180 

1.503.820 

3,215,350 

5.400.580 

3,994,152 

20,367,082 

1911 

5,897,000 

1,630.000 

3,422,000 

5.630.100 

4,304,589 

21,883,689 

1912 

6,918,450 

1,733,330 

3,830,000 

5,955,000 

4,550,946 

22,897,726 

1913 

6,573.540 

1.779,350 

4,152,000 

6,690,000 

4,896,736 

24,091,626 

1  100  hectares  —  3,861  square  miles. 


a  special  tariff.  Finally  he  turned  to  a  statistical  re- 
port, and  said: 

"  I  suppose  that  the  greatest  opportunities  for  manu- 
facturing here  in  Argentina  are  of  the  things  of  which  we 
import  the  most.  As  you  sec,  this  list  includes  almost 
everything.  Whereas  probably  all  the  clothes  that 
your  ver>^  able  President,  Senor  Wilson,  is  wearing 
t(j-day  were  manufactured  in  the  United  States,  not  a 
thing  which  I  have  on,  from  my  collar  to  my  shoes, 
was  manufactured  here  in  Argentina." 

Although  the  official  figures  are  very  convincing,  they 
do  not  necessarily  signify  that  South  America  is  a 
happy  hunting  ground  either  f(jr  farmers  or  others. 


252  THE   FUTURE   OF  SOUTH  AMERICA 

Great  quantities  of  cattle  and  grain  may  be  raised  each 
year;  but  all  the  profits  may  go  to  the  railroads,  the 
packers,  and  the  commission  men.  I  have  heard  that 
this  is  especially  true  in  Argentina,  where  so  many 
of  the  farmers  are  renters,  and  where  the  railroads 
and  other  corporations  are  so  free  from  government 
supervision.  Therefore  I  asked  the  President  this 
question : 

"Mr.  President,  I  have  always  heard  that  Argentina 
is  a  rich  man's  country;  that  if  one  has  money,  Argen- 
tina is  a  good  place  to  seek  land,  but  otherwise  one  is 
better  off  in  Canada  or  some  other  country,  which  favors 
the  small  farmer.    Is  this  true  or  not?" 

"There  is  no  doubt,"  answered  the  President,  "that 
more  favorable  homestead  laws  will  be  passed  and  that 
the  tendency  is  greatly  in  favor  of  a  gradual  division  of 
the  land  among  more  farmers.  Although  the  man  with- 
out capital  has  always  been  protected  in  the  cities  — 
where  he  seems  to  want  to  live  —  perhaps  he  has  not 
been  sufficiently  cared  for  when  he  has  gone  into  the 
country.  Attention  is  continually  being  given,  how- 
ever, to  the  farmer  immigrant,  and  I  think  you  will 
soon  see  changes  in  our  land  laws." 

I  then  called  to  the  President's  attention  the  fact 
that  so  many  of  the  Italians  and  others  who  come  to 
Argentina  for  the  harvest  work,  beginning  in  January, 
return  home  again  in  April.  (In  the  United  States,  the 
proportion  of  those  returning  is  very  small  indeed.) 
The  President  explained  this  by  saying  that  the  Ital- 
ians who  come  to  the  United  States  can  gain  nothing 
by  returning  home,  since  the  Italian  and  North  Ameri- 
can summers  come  at  the  same  time,  in  July,  August, 
and  September.    The  South  American  summer,  how- 


ARGENTINA  253 

ever,  comes  in  January,  Februarj^,  and  ]\Iarch,  thus 
giving  the  Italians  there  the  opportunity  each  year  to 
work  at  gathering  the  harvest  both  in  their  own  coun- 
try and  in  Argentina. 

One  day  I  was  entertained  by  an  Italian  who  had 
come  to  South  America  as  a  common  laborer  and  who 
had  become  very  wealthy  through  importing  machin- 
ery.  He  "ventured"  to  the  extent  of  marrying  an 
Argentine  woman,  and  has  raised  two  girls  and  three 
boys.  One  boy  has  been  educated  in  Leipzig,  another 
at  Oxford,  England,  and  the  third  in  the  United  States. 
While  we  were  riding  about  the  country  in  his  beautiful 
high-powered  Italian  car,  he  said  to  me: 

"A  great  opportunity  awaits  the  two  countries, 
Argentina  and  the  United  States,  to  get  together  on  farm 
labor  and  provide  steamship  accommodations  for  trans- 
porting each  year  in  April,  when  our  winter  begins,  the 
surplus  from  Argentina  to  the  United  States,  and  from 
the  United  States  back  to  Argentina  in  October,  when 
your  winter  commences.  This  would  be  a  splendid 
thing  for  both  the  Americas.  Please  suggest  it  wher- 
ever you  can." 

"Never  venture,  never  win"  applies  to  almost 
ever>i:hing  you  see  and  every  place  you  visit  in  Latin 
America;  in  fact,  it  applies  everywhere  and  to  every- 
thing. Because  a  thing  never  has  been  done,  is  no 
reason  why  it  should  not  be  done.  Moreover,  when 
some  one  attempts  to  discourage  us,  he  usually  has  a 
selfish  reason.  This  especially  applies  to  discussions 
concerning  the  granting  of  long  credits. 

In  my  opinion,  there  is  more  sentiment  than  finan- 
cial need  concerning  the  whole  question  of  South  Amer- 
ican credits.    The  people  of  Argentina,  Chile,  and  Brazil 


254  THE  FUTURE  OF  SOUTH  AMERICA 

consider  themselves  our  equals;  and  with  an  allowance 
for  their  age,  the  Argentines  certainly  are.  They  are  not 
up  to  us  in  all  things,  but  they  lead  us  in  some  things. 
There  may  be  more  graft  in  their  national  government 
than  there  is  in  ours;  but  their  city  governments  are 
undoubtedly  better. 

The  park  systems  of  Buenos  Aires  are  the  most  com- 
plete that  I  have  ever  seen.  Upon  inquiry,  I  found  that 
the  Park  Commission  runs  a  special  training  school  for 
young  men  who  desire  to  become  park  superintend- 
ents, landscape  gardeners,  and  the  like.  One  half  of 
the  day  is  given  to  book-study  at  the  park  headquarters, 
and  the  other  half  to  practical  work,  such  as  pruning 
and  transplanting  trees,  planting  seeds  and  seedlings. 
Even  Montevideo,  across  the  bay,  can  teach  our  cities 
a  lesson.  It  has  a  fine,  long  boulevard  with  a  grass  plot 
and  double  street-car  tracks  in  the  center.  Between 
the  tracks  is  the  pole  line  with  the  trolley  wires  hanging 
from  brackets  on  each  side,  and  on  top  of  each  pole  is  a 
big  arc  light.  On  each  of  these  poles,  about  ten  feet 
from  the  ground,  is  a  circular  basin  of  beautiful  plants, 
such  as  geraniums  and  ivy,  on  the  principle  of  a  win- 
dow-box. Here,  also,  were  flagmen  at  dangerous  street 
crossings  where  street  cars  and  automobiles  might  col- 
lide. We  think  of  making  steam  railroads  supply  flag- 
men at  certain  points,  but  it  never  occurs  to  us  to  have 
the  electric  roads  do  likewise  and  place  flagmen  at  all 
important  crossings. 

Owing  to  the  funny  stories  which  tourists  tell  about 
the  "marriage  market"  in  Valparaiso,  and  some  of  the 
volunteer  fire  departments  of  other  West  Coast  cities, 
we  are  apt  to  think  that  we  ourselves  are  far  superior 
to  our  Chilean  and  Argentine  neighbors.    But  none  of 


ARGENTINA  255 

US  should  do  any  bragging.  What  the  most  inteUigcnt 
of  us  know  compares  wnth  what  the  most  ignorant 
know  only  as  the  head  of  a  pin  compares  with  the 
point.  When  comparing  our  customs  with  those  of 
South  America,  I  like  to  think  of  the  old  Inca  days  in 
Peru,  before  European  customs  were  introduced,  when 
every  man  was  compelled  to  marry  before  he  was 
twenty-five.  Then  he  was  given  a  farm  by  the  State; 
while  at  death,  all  he  left  above  a  certain  amount  re- 
verted to  the  State. 

I  am  sure  that  the  Argentines  are  very  much  hurt 
when  we  refuse  to  treat  them  as  equals.  They  doubt- 
less could  pay  cash  and  borrow  at  their  local  banks  as 
do  merchants  in  the  United  States  if  their  system  were 
so  arranged.  They  have  just  as  much  money  as  have 
our  storekeepers;  but  the  Argentine  system  provides 
for  the  jobbers  to  do  the  financing  instead  of  the  local 
banks.  This  is  why  there  are  so  few  banks  in  Argen- 
tina and  so  many  jobbers.  Hence  it  greatly  hurts  their 
pride  to  have  us  question  their  credit,  especially  when 
it  is  satisfactory  to  the  English,  French,  Germans,  and 
other  people. 

At  parting  the  President  said: 

"  Extend  to  your  readers  for  me  a  hearty  invitation 
to  visit  Argentina.  Tell  your  merchants  not  to  refuse 
us  credit  until  they  personally  come  down  here  and 
meet  us.  Tell  your  manufacturers  not  to  rely  upon 
what  the  competitive  manufacturers  of  other  nations 
say  about  us.  Tell  your  bankers  and  investors  to  come 
here  while  great  bargains  can  be  secured  and  while 
money  can  be  loaned  at  high  interest  rates.  Call  at- 
tention to  the  fact  that  there  are  fewer  United  States 
citizens  in  Argentina  to-day  than  were   here  thirty 


256 


THE  FUTURE  OF  SOUTH  AMERICA 


years  ago. 
table : 


Permit  me  to  call  your  attention  to  this 


Arrival  of  Immigrants  in  the  Republic  prom  1857  to  1913 


Arrivals  in  aU 

Italians 2,247,760 

Spaniards 1,420,393 

French 211,608 

Russians 155,285 

Syrians 130,937 


Austrians  .  ,  . 
Germans  ... 
Britons   .... 

Swiss , 

Portuguese  .  . 
Belgians  ... 
Greeks  .... 
Dutch  .... 
North  Americans 


85,053 
59,688 
53,792 
32,504 
24,997 
22,663 
11,505 
7,412 
6,028 


Arrivals  in  1913 

Spaniards 122,271 

Italians 114,252 


Syrians 
Russians    .    .    .    . 

French  

Germans  .  .  .  . 
Austrians  .  .  .  . 
Portuguese    .    .    . 

Britons 

Swiss 

Greeks 

Danes 

North  Americans 


19,542 

18,616 

4,696 

4,620 

4,317 

3,619 

2,132 

880 

849 

819 

519 


"Also,"  the  President  continued,  "urge  your  people 
to  establish  steamship  lines  between  New  York  and 
Buenos  Aires  for  both  passengers  and  freight  under  the 
American  flag.    Study  these  statistics: 


Tonnage  of  Foreign  Vessels  (both  Steam  and  Sail) 

Entered  at  and  Cleared  from  the  Argentine 

Ports  in  1913,  Showing  Nationalities 


Tons 
United  Kingdom     .  18,433,228 
Germany      ....     2,840,178 

Italy 1,443,936 

France 1,181,909 


Austria  Hungary 
Norway  .  .  .  . 
Holland    .    .    .    . 

Spain 

Belgium  .  .  .  . 
Denmark  .  .  . 
Uruguay  .... 


565,406 
498,545 
446,205 
429,888 
346,789 
130,337 
127,008 


Tons 

Sweden 113,858 

Chile 107,826 

Greece 73,652 

Brazil 64,743 

Russia 43,560 


United  States 
Portugal  .  . 
Mexico  .  .  . 
Paraguay  .  . 
BoUvia     .    .    , 


27,190 

3,432 

1,500 

824 

432 


ARGENTINA  257 

Look  at  the  United  States,  followed  only  by  Portugal, 
Mexico,  Paraguay,  and  Bolivia!" 

These  figures,  like  the  others,  show  that  those  who 
have  ventured  have  been  the  ones  to  win.  The  English, 
Germans,  and  Italians  have  ventured  the  most,  and 
to-day  have  the  cream  of  the  Argentine  business. 
Moreover,  we  can  displace  them  only  by  likewise  ven- 
turing men,  money,  and  time.  Argentina  is  like  every 
other  country.     Only  those  who  venture  really  win. 

As  I  left  the  private  room  in  which  the  interview  was 
held,  I  passed  out  onto  a  glassed-in  veranda,  or  sun 
parlor,  which  looked  down  upon  the  bay.  There,  within 
a  mile  of  waterfront,  was  the  largest  number  of  steam- 
ships that  I  ever  saw  together.  There  were  flags  of 
every  nation.  Most  of  these  ships  were  loading  with 
grain  or  frozen  beef  from  the  great  elevators  and  stock- 
yards adjoining  the  waterfront.  What  an  opportunity 
Argentina  will  have  —  thought  I  —  when  an  inter- 
nation  and  neutral  trade  flag  shall  be  adopted  and  the 
seas  come  under  international  control! 

From  here  I  passed  into  the  President's  reception 
room.  Again  I  stopped  to  look  at  the  beautiful  paint- 
ings, by  old-world  masters,  which  adorned  the  room. 
Here  was  art  at  its  best,  amid  surroundings  of  luxury 
and  beauty,  things  for  which  the  grain  and  cattle  were 
exchanged.  The  contrast  was  so  marked  that  for  days 
it  remained  by  me.  For  in  those  moments,  the  sum 
total  of  Argentina,  with  its  great  producing  powers  and 
its  love  for  spending,  had  been  revealed  to  me.  Yes,  the 
Argentines  are  taking  their  own  advice.  They  have 
ventured  and  they  have  won;  not  through  saving,  as 
did  our  New  England  ancestors,  but  rather  through 
spending. 


258  THE  FUTURE  OF  SOUTH  AMERICA 

Of  course,  to  the  average  banker  and  manufacturer 
of  the  United  States,  this  seems  to  be  the  wrong  prin- 
ciple upon  which  to  go.  "Borrowing  and  spending" 
does  not  sound  good  to  a  thrifty  New  England  manufac- 
turer. Hence  his  fear  to  extend  credits;  but  this  fear 
has  little  real  basis  in  fact. 

If  my  Argentine  experience  had  been  confined  to  the 
Argentine  palace,  probably  I,  also,  would  be  pessimistic 
regarding  a  nation  which  borrows  so  heavily  and  spends 
so  freely.  Fortunately,  however,  my  observations 
were  not  limited  to  the  palace  or  from  its  windows.  I 
was  able  to  go  out  on  the  Argentine  prairies  and  see  the 
great  fertile  plains  where  Argentina's  wealth  is  pro- 
duced. As  I  rode  through  the  thousands  of  acres  of 
corn  and  other  grains  and  as  I  saw  the  hundreds  of 
thousands  of  blooded  fat  cattle  ranging  over  the  prai- 
ries, I  gradually  came  to  the  conclusion  that  Argentina 
is  justified  both  in  her  borrowing  and  in  her  spending. 
Those  who  have  never  seen  a  single  tract  of  twenty 
thousand  acres  of  alfalfa  in  one  lot  cannot  realize  the 
great  producing  qualities  of  the  Argentine  Republic, 
and  yet  it  has  many  such  tracts  of  alfalfa  and  wheat. 

The  next  step  in  South  American  trade  is  to  convince 
North  American  short-sighted  bankers  of  South  Amer- 
ica's great  natural  wealth.  Whether  or  not  this  can  be 
accomplished  soon  I  do  not  know;  but  I  do  know  that 
if  our  bankers  could  be  taken  to  Argentina  and  shown 
its  cities,  the  wheat  fields,  the  herds  of  cattle  that  I 
have  seen  there,  they  would  not  hesitate  one  moment 
in  establishing  throughout  South  America  a  great  Bank 
of  North  America. 

In  referring  to  the  other  countries  of  Latin  America, 
I  suggest  that  certain  things  are  needed,  such  as  immi- 


ARGENTINA  259 

gration,  irrigation,  capital,  and  the  like,  and  that  much 
cannot  be  expected  from  these  countries  until  such 
things  are  secured.  It  is,  however,  entirely  different 
with  Argentina.  Although  Argentina  needs  more  immi- 
gration and  capital,  yet  it  is  fast  obtaining  them.  More- 
over, Argentina  has  a  large  birth  rate  and,  being  a 
greater  exporter,  is  rapidly  accumulating  capital.  In 
other  words,  Argentina's  future  is  assured.  It  is  a 
country  much  like  our  own,  and  its  future  will  be  as 
great  and  prosperous.  Argentina  is  in  a  class  by  itself 
among  Latin-American  countries.  It  is  not  a  coming 
country;  it  is  already  here  1 


CHAPTER  XV 

Paraguay 

Paraguay  is  one  of  the  two  interior  countries  of 
South  America,  and  Hes  almost  in  the  center  of  the  con- 
tinent. It  is  midway  between  the  two  great  oceans 
east  and  west,  and  its  northern  boundary  is  equally 
distant  from  the  northern  and  southern  extremities  of 
the  continent.  Without  effective  means  of  transporta- 
tion and  inhabited  in  the  main  by  Indians  or  people  of 
Indian  descent,  the  country  in  the  past  has  had  little 
to  offer  in  the  way  of  trade  or  investment.  But  to- 
day, with  the  completion  of  railroads,  it  begins  to  offer 
a  chance  for  all  interested  in  the  development  of  a  rich 
territory  where  land  is  cheap  and  fertile,  the  possibili- 
ties extensive,  and  the  present  inhabitants  incapable 
of  great  things.  The  area  of  Paraguay  is  about  one 
hundred  and  twenty-two  thousand  square  miles,  or  the 
same  size  as  Indiana,  Ilhnois,  and  half  of  Missouri  com- 
bined, and  the  population  is  perhaps  eight  hundred 
thousand.  This  population  has  been  increased  greatly 
of  late  by  immigration,  for  the  country  now  offers  op- 
portunities for  making  a  good  hving  in  agriculture. 
The  greater  part  of  Paraguay  is  a  subtropical  plain,  and 
grows  the  products  of  both  the  temperate  and  tropical 
zones.  The  great  stretches  of  prairie  or  llanos  offer 
good  opportunities  for  cattle  raising,  while  the  forests 
on  the  slopes  of  the  mountains  and  along  the  banks  of 


PARAGUAY  261 

the  numerous  rivers  furnish  woods  of  great  variety  and 
value,  besides  many  medicinal  plants. 

Like  most  of  the  countries  of  South  America,  the 
liistory  of  Paraguay  stretches  back  to  the  early  six- 
teenth century.  It  was  discovered  by  Sebastian  Cabot, 
who  in  the  years  1526  and  1527  sailed  up  the  Parana 
and  Paraguay  rivers.  He  was  followed  by  Spanish 
explorers  who  founded  Asuncion,  the  capital  of  the 
republic,  in  1536.  The  Spanish  governed  the  country 
until  1811,  when  independence  was  declared,  and  since 
then  Paraguay  has  been,  in  theory  at  least,  a  republic. 

The  great  rivers  flow  along  the  borders  of  the  country 
and  serve  as  its  highways.  The  great  Parana  River  is 
more  than  two  thousand  miles  long,  and  can  be  navi- 
gated by  large  vessels  as  far  as  the  boundary  of  Para- 
guay-, and  by  small  boats  for  six  hundred  miles  farther. 
The  Paraguay  River  flows  through  the  center  of  the 
country,  and  large  steamers  can  sail  up  as  far  as 
Asuncion,  about  six  hundred  and  fifty  miles  from 
Buenos  Aires. 

Asuncion  is  a  prosperous  city,  and  has  about  one 
eighth  of  the  population  of  the  country.  It  is,  of 
course,  the  trade  center  of  the  country,  and  is  quite  a 
modern  place.  There  is  an  electric  hght  and  street  car 
system,  and  many  of  the  buildings  are  attractive.  It 
has  some  manufactures  such  as  tanning  and  cigar  mak- 
ing, and  the  lace  industry  is  also  important. 

The  resources  of  the  country  are  largely  agricultural. 
Indigo  and  sugar-cane  are  easily  cultivated,  and  the 
forests  contain  many  different  varieties  of  cabinet  and 
dye  woods,  resins,  and  balsams.  A  native  fiber  plant 
known  as  mapajo,  used  in  the  manufacture  of  a  coarse 
textile  for  garments,  is  extensively  raised.    Tobacco  is 


262  THE  FUTURE  OF  SOUTH  AMERICA 

a  leading  crop,  and  all  this  goes  to  Buenos  Aires.  The 
native  cotton  is  very  valuable,  and  this  industry  offers 
great  possibihties. 

One  of  the  most  lucrative  industries  in  Paraguay  is 
the  manufacture  of  oil  of  petitgrain,  extracted  from 
the  leaves  of  the  native  orange  tree.  The  product  is 
used  as  a  basis  for  perfumes  and  flavoring  extracts, 
and  it  is  said  that  it  takes  three  hundred  and  fifty 
pounds  of  orange  leaves  to  yield  one  pound  of 
essence. 

The  principal  crop  of  the  country  is  the  mat^  tea 
which  grows  everywhere,  and  the  exports  of  wliich  are 
immense.  The  plant  is  called  yerba  mate.  Although 
Paraguay  is  its  home,  it  also  grows  largely  in  southern 
Brazil.  It  is  usually  found  in  the  forests,  and  is  al- 
ways considered  by  lumbermen  as  a  most  valuable 
by-product. 

Those  who  drink  this  beverage  say  that  it  has  all  the 
stimulating  and  nourishing  quaUties  of  the  tea  we  use, 
but  none  of  its  injurious  effects.  It  has  much  in  com- 
mon with  other  tea  and  with  coffee,  as  it  contains  both 
tannin  and  caffein.  Of  tannin,  there  is  less  in  mate 
than  in  other  teas  and  in  coffee;  of  caffein,  there  is 
less  than  in  tea,  but  about  the  same  amount  as  in  cof- 
fee. It  is  claimed,  therefore,  that  the  caffein  gives  to 
Paraguay  tea  its  sustaining  quality,  while  the  small 
amount  present  accounts  for  its  decided  virtues.  It 
does  not  irritate  but  soothes  the  nervous  system,  and 
this  is  the  reason  for  its  past  and  present  use  among  all 
classes  of  people. 

The  name  mate  really  refers  to  the  cup  from  which 
the  natives  drink  rather  than  to  the  herb  itself.  This 
cup  is  a  dried  gourd,  hollowed  out,  with  an  aperture 


PARAGUAY  263 

where  the  stem  used  to  be,  into  which  the  crushed 
leaves  are  placed  before  boiling  water  is  poured  on  them. 
From  this  cup  the  decoction  is  then  sucked  through  a 
tube  called  a  bombilla  (Uttle  pump).  Formerly  this 
was  made  of  a  reed,  and  is  sometimes  now  so  found; 
but  usually  it  is  fashioned  from  metal,  with  a  perforated, 
spoon-shaped  expansion  at  the  lower  end. 

The  tea  may  be  drunk  either  cold  or  hot,  at  meals  or 
between  meals.  It  is  reported  that  a  company  has  been 
formed  abroad  to  extend  the  use  of  mate.  Return- 
ing settlers  and  soldiers  from  South  America  insist 
on  importing  it  for  their  own  use,  as  they  become  very 
fond  of  it. 

The  plant  itself  is  the  South  American  holly,  and 
outside  of  Paraguay  is  found  also  in  the  four  Brazilian 
states  of  Parana,  Santa  Catherina,  Rio  Grande  do  Sul, 
and  Matto  Grosso;  also  in  the  northeastern  region  of 
Argentina.  It  is  a  bushy  evergreen  shrub,  somewhat 
resembling  an  orange  tree.  It  has  bright  green  leaves, 
small  yellow  flowers,  and  tiny,  purplish-black  berries. 
There  are  different  kinds,  the  best  having  a  very  small 
leaf  of  a  dark-green  shade.  The  seeds  become  so  hard 
and  dry,  a  few  days  after  picking,  that  they  can  be 
cut  only  with  a  very  sharp  utensil.  Harvesting  the 
leaves  is  conducted  now  in  the  same  way  that  it  was 
centuries  ago.  This  method  is  described  by  an  author- 
ity a.s  follows: 

"The  branches  are  collected  and  piled  up  in  the  form 
of  a  haystack.  Then  the  torrefadion,  as  the  smoking 
process  is  called,  begins,  and  lasts  for  about  three 
days.  The  natives  are  very  skillful  in  deciding  just 
when  the  leaves  have  reached  the  proper  degree  of 
dryness  for  use.     Usually  about  twenty-four  hours  is 


264  THE  FUTURE  OF  SOUTH  AMERICA 

the  right  time  for  exposing  them  to  heat,  sometimes 
more,  but  never  less." 

The  Indians  originally  did  nothing  but  gather  the 
leaves  from  the  native  trees  in  the  forest;  but  the 
Jesuits  cultivated  mate  from  the  seed,  and  there  has 
since  been  a  steady  growth  in  this  cultivation.  As 
South  America  supplies  the  world,  and  as  the  beverage 
is  becoming  increasingly  popular,  more  and  more  cul- 
tivation will  probably  be  necessary  to  meet  the  demand. 
It  has  been  estimated  that  the  number  of  drinkers  of 
Paraguay  tea  is  about  ten  million  persons  in  South 
America,  and  it  is  stated  that  the  supply  frequently 
falls  short  of  the  demand.  The  yearly  consumption 
per  capita  of  this  drink  is  given  as  follows:  Chile,  1123^ 
pounds;  Bolivia,  43^  pounds;  Argentina,  20  pounds; 
Uruguay,  22  pounds;  and  Paraguay,  34  pounds.  Even 
in  the  Brazilian  State  of  Parana,  very  near  the  coffee- 
growing  center  of  the  world,  the  annual  consumption 
per  capita  is  forty-four  pounds.  This  shows  the  influ- 
ence the  habit  has  on  the  European  immigrant,  for 
Parana  has  a  relatively  large  proportion  of  Germans 
and  Poles  among  its  colonists. 

Throughout  Brazil  and  Argentina,  the  average  retail 
price  of  the  tea  which  we  drink  is  about  $1.20  a  pound; 
while  mate  sells  for  less  than  twenty  cents  a  pound. 
In  large  quantities,  I  could  purchase  it  for  ten  cents  a 
pound,  so  that  it  surely  could  be  sold  in  the  United 
States  at  from  twenty  to  twenty-five  cents  a  pound. 
For  making  one  cup  of  drink,  more  mate  is  needed  than 
regular  China  tea.  China  tea  yields  up  its  strength 
more  quickly  when  dropped  into  boiling  water  than 
does  mate.  China  tea-leaves,  however,  are  of  little  use 
for  the  second  cup;  while  the  same  mate-leaves  are 


PARAGUAY  265 

good  for  a  second,  third,  or  fifth  cup.  Thus  in  making 
one  cup  of  tea,  our  regular  China  tea  is  more  conven- 
ient and  perhaps  as  cheap;  but  in  serving  an  entire 
family,  mat6  could  be  used  to  great  advantage.  Some 
day  it  will  surely  be  introduced  extensivcl}^  throughout 
the  United  States,  and  some  persons  will  make  a  large 
amount  of  money  in  the  process. 

The  United  States  has  had  Uttle  trade  relation  with 
Paraguay.  We  have  taken  some  of  their  exports,  such 
as  hides  and  tannins,  but  we  have  sent  them  little  in 
return.  Our  exports  to  that  country  are  only  alwut 
six  per  cent,  of  their  total  imports.  As  Paraguay  will 
eventually  be  on  the  transcontinental  railway,  this 
state  of  affairs  should  be  changed  easily.  Immigration 
will  rapidly  increase  the  demand  for  suppKes  of  all 
kinds,  and  should  make  the  country  a  good  market. 
Paraguay  also  offers  opiwrtunities  for  settlers,  and  the 
delightful  climate  will  aitl  in  securing  them.  So  far  the 
trade  has  been  principally  in  the  hands  of  the  Germans, 
French,  and  Spanish;  but  altogether  it  amounts  to 
little.  Experts  on  South  America  tell  me  that  Paraguay 
is  the  least  developed  of  any  of  the  countries.  Wliile 
its  future  may  be  bright,  yet  this  future  is  a  long  way 
distant. 

The  immediate  future  of  Paraguay  depends  upon 
when  and  how  its  lumber  is  to  be  cut  and  marketed. 
Wonderful  timber  lands  along  the  rivers  can  be  pur- 
chased to-day  at  six  dollars  per  acre,  while  timber  is 
selling  at  high  prices  in  Buenos  Aires.  The  real  future 
of  Paraguay  awaits  immigrants  who  are  wilUng  to  farm. 
Splendid  land  can  be  purchased  at  from  twenty  cents 
per  acre  up,  according  to  the  distance  from  the  rivers. 

There  are  also  great  water  powers  in  the  country. 


266 


THE   FUTURE  OF   SOUTH  AMERICA 


Coal  is  scarce  in  Argentina  and  central  South  America, 
and  these  water  powers  must  ultimately  be  depended 
upon  for  manufacture.  At  the  moment,  Paraguay  only 
needs  more  railway  service  to  begin  a  period  of  develop- 
ment. 


CHAPTER  XVI 
Uruguay . 

Leaving  Buenos  Aires  at  night,  one  reaches  Monte- 
video the  next  morning,  after  a  ride  of  one  hundred  and 
twenty-five  miles.  There  are  two  Hues  of  very  attrac- 
tive steamers,  and  the  fare  is  reasonable.  Montevideo  is 
almost  due  east  from  Buenos  Aires,  and  is  situated 
on  a  small  peninsula,  so  that  in  the  business  parts  of 
the  city,  the  streets  begin  and  end  at  the  water.  Many 
wonder,  when  studying  Uruguay,  why  this  great  body 
of  water,  one  hundred  and  eighty  miles  wide  and  so  evi- 
dently an  arm  of  the  sea,  should  not  be  called  the  Gulf 
of  La  Plata.  The  exact  point  at  which  the  river  enters 
the  Atlantic  cannot  be  told,  but  for  all  practical  pur- 
poses, it  is  safe  to  say  that  the  east  side  of  Montevideo 
faces  the  Atlantic  Ocean,  while  the  south  is  washed  by 
the  waters  of  the  river.  The  ancient  fortress.  El  Cerro, 
appears  as  the  guardian  of  the  entrance,  on  the  moun- 
tain from  which  the  city  takes  its  name.  The  lighthouse 
at  the  top  of  this  hill,  with  its  revolving  light,  is  visible 
for  twenty-five  miles.  After  the  absolute  flatness  of 
Buenos  Aires,  tiiis  elevation  is  a  great  relief,  though  it 
be  not  more  than  four  hundred  and  fifty  feet.  The 
cathedral  towers  are  also  conspicuous,  rising  to  a  height 
of  over  one  hundred  feet  above  the  city. 

Of  the  city  itself,  an  enthusiastic  traveler  has  said: 
"Oh,  altogether  different  is  this  from  anything  in  our 


268  THE  FUTURE  OF  SOUTH  AMERICA 

New  World;  this  happy,  drowsy  capital  of  Uruguay, 
with  its  little,  winding  streets  showing  water  at  the 
ends,  and  no  great  obtruding  docks,  with  its  three 
hundred  thousand  inhabitants,  the  most  contented  of 
any  South  American  city,  more  native-born,  fewer 
poor,  the  healthiest  city  of  the  East  Coast,  clean  to  per- 
fection, with  compulsory  education  for  all,  and  for  all 
peace  and  good  government." 

"This  capital  of  Uruguay  is  divided  into  three  sec- 
tions: Antigua,  or  old  town;  Nueva,  or  new  town;  and 
Novisima,  or  newest  town.  Naturally,  the  old  town  is 
the  commercial  section  on  the  end  of  the  peninsula, 
having  an  adequate  and  up-to-date  system  of  docks, 
representing  an  investment  of  ten  million  dollars  or 
more,  along  the  bay  inclosed  by  the  peninsula.  This 
bay  is  two  miles  wide,  and  therefore  capacious  enough 
to  accommodate  a  large  number  of  ocean  steamers  at 
one  time.  Almost  all  the  great  passenger  steamers  of 
the  European  lines  make  Montevideo  direct. 

''The  new  part  contains  the  principal  public  build- 
ings, while  the  newest  portion  stretches  back  among  the 
hills.  Streets  in  the  newer  sections  are  wider  than  in 
the  old,  and  there  are  sixteen  plazas  in  the  city,  of 
which  Prado  Park  is  the  finest.  This  is  one  of  the  fairest 
gardens  imaginable,  with  its  lakes,  lawns,  and  a  great 
variety  of  trees  and  shrubs.  It  has  a  restaurant  and 
other  buildings;  also  sections  fitted  up  for  all  sorts  of 
outdoor  games." 

About  one  sixth  of  the  buildings  in  the  city  are  three 
or  four  stories  in  height,  most  of  the  dwellings  being  of 
only  one  story,  constructed  of  native  stone.  Many  of 
these  have  fronts  of  bright-colored  stucco.  In  some 
parts  of  the  city  Portuguese  tiles  are  used  in  the  archi- 


URUGUAY  269 

tecture,  and  there  are  buildings  with  handsome  fronts 
of  granite  or  Italian  marl^le.  Most  of  the  streets  are 
lighted  by  electricity.  Water  is  obtained  from  the 
Santa  Lucia  River,  thirty-seven  miles  distant,  the  large 
reservoir  being  one  hundred  feet  higher  than  the  cen- 
tral square  of  the  city.  There  is  a  good  sewage  system, 
aided  by  the  natural  situation  of  the  city,  the  land  slop- 
ing from  the  central  ridge  of  the  peninsula  to  the  water- 
side. 

Montevideo  seems  to  be  advanced  in  her  care  of  the 
poor  and  diseased,  as  is  shown  by  the  commodious 
building  in  the  midst  of  a  beautiful  park,  provided  as 
an  almshouse  for  the  city's  poor,  and  by  the  various 
hospitals.  A  handsome  building  is  the  home  of  the 
league  organized  to  fight  the  ravages  of  tuberculosis. 

The  Solis  Theater  covers  almost  two  acres,  and  will 
scat  two  thousand  people.  The  various  buildings  of  the 
University  compare  favorably  with  those  of  any  city. 
The  Villa  Dolorosa  is  said  to  be  the  most  unique  place 
in  the  world,  for  showing  an  abounding  and  indiscrimi- 
nating  love  for  animals.    To  quote  again: 

"Here  was  a  pagoda  surrounded  by  tropical  plants, 
most  beautifully  tended,  all  for  the  benefit  of  one  happy 
anteater,  daily  kept  supplied  at  vast  expense  with  his 
choice  fare.  Birds  of  amazing  color  and  size  sang  in  a 
great  thicket  of  trees.  The  wires  that  kept  them  cap- 
tive were  so  concealed  that  neither  they  nor  we  could 
see  them.  Snakes  and  huge  serpents  crawled  blissfully 
among  ferns  and  palms,  the  guarding  glass  roofs  and 
sides  clear  to  transparency.  Small  four-months-old 
lion  cubs,  with  wide  leather  collars,  frolicked  unre- 
strained among  the  keepers,  for  all  the  world  like  pet 
puppies,  and  we  actually  patted  them;    no  one  could 


270  THE  FUTURE  OF  SOUTH  AMERICA 

help  it.  -Tliere  was  a  llama  living  on  a  manufactured 
Andean  peak,  and  a  chimpanzee  which  had  a  keeper  all 
to  himself  and  his  own  gymnasium  for  play  and  exercise. 
A  cemetery  is  one  of  the  features.  Here  each  of  the 
animals  which  had  died  had  his  own  grave  and  tomb- 
stone, with  appropriate  carvings  and  epitaphs."  The 
Montevideans  are  proud  of  this  patron  of  animals,  and 
like  to  have  visitors  spend  an  afternoon  at  the  Villa 
Dolorosa  —  as  well  as  to  visit  the  Sohs  Theater  or 
the  University. 

Of  course,  the  Argentines  —  and  most  travelers, 
for  that  matter  —  look  upon  Montevideo  as  a  suburb 
of  Buenos  Aires;  but  let  me  tell  you  that  manufac- 
turers of  the  United  States  who  work  on  this  basis 
make  a  great  mistake.  In  no  country  have  I  found  a 
more  sensitive  and  loyal  people  than  in  Uruguay. 
Every  merchant  there  with  whom  I  talked  said,  in  effect: 
"Tell  your  friends  in  the  United  States  to  do  business 
with  us  direct.  Don't  make  us  do  it  through  Buenos 
Aires.  We  have  a  fine  city  here  of  nearly  half  a  million 
people.  It  is  growing  every  day,  and  we  want  to  deal 
directly  with  you.  We  have  a  little  country;  but  our 
people  are  justly  proud." 

Whoever  wishes  something  to  distinguish  Uruguay 
from  its  sister  repubhcs  may  remember  that  it  is  the 
smallest  of  the  South  American  States,  and  that  it  has 
neither  mountains,  nor  deserts,  nor  antiquities,  nor 
aboriginal  Indians.  Some  one  calls  Uruguay  a  buffer 
between  the  larger  States  of  Argentina  and  Brazil,  and 
certainly  there  has  been  plenty  of  fighting  in  her  terri- 
tory. Another  historian  calls  it  the  "cockpit  of  the 
southern  half  of  the  continent."  From  the  time  when 
it  was  discovered,  in  1515,  down  to  the  period  when  the 


URUGUAY  271 

power  of  Spain  was  permanently  established  on  the 
Plata,  both  Spanish  and  Portuguese  settlers  had  to 
contend  with  the  constant  hostilities  of  the  Indians. 
Later  it  was  the  storm  center  of  the  Spanish  and  Portu- 
guese strife  for  territorial  control.  Then  came  the  in- 
vasion of  the  English,  and  a  few  years  later  the  wars  for 
independence. 

Finally,  on  May  1,  1829,  Uruguay  achieved  her  inde- 
pendence, and  set  up  a  government  of  her  own,  as  the 
Oriental  RepubUc  of  Uruguay.  Ever  since  the  people 
of  Uruguay  became  independent  of  Spain,  fighting  has 
been  in  order. 

The  pccuhar  thing  about  it  is  that  with  all  this  fight- 
ing, Uruguay  has  constantly  prospered,  and  has  con- 
tinued to  grow  in  wealth  and  population.  Capital  has 
come  in  freel}'  to  build  railroads,  and  the  Uruguayan 
five  per  cent,  bonds  average  a  price  in  the  London  stock 
market  which  would  seem  to  indicate  the  good  opinion 
held  by  European  investors.  Foreign  trade  has  in- 
creased many  fold  since  18G2.  In  spite  of  their  love  for 
fighting,  the  people  have  turned  to  work,  and  the  land 
or  cattle  owner  has  to  depend  less  on  foreign  labor  than 
in  Argentina.  The  population  to  the  square  mile  is 
greater  than  that  of  any  other  country  of  South  Amer- 
ica, which,  however,  is  not  giving  it  a  very  large  density 
figure  (13.1). 

Although  small  by  the  side  of  its  neighbors,  Brazil 
and  Argentina,  and  the  smallest  of  the  South  American 
repubhcs,  yet  Uruguay  is  twice  the  size  of  Portugal, 
and  about  the  size  of  New  England  with  Maryland 
added,  or,  as  some  one  has  said,  it  could  wrap  in  its 
limits  North  Dakota.  It  has  a  wide,  almost  unbroken 
sweep  of  parklike  plains,  with  no   mountains   higher 


272  THE   FUTURE  OF  SOUTH  AMERICA 

than  two  thousand  feet.  It  possesses  a  network  of 
rivers,  with  seven  hundred  miles  navigable,  five  hundred 
of  which  are  furnished  by  the  Uruguay  and  the  La 
Plata. 

The  chmate  is  mild,  bordering  on  sub-tropical,  like 
that  of  Texas  or  Georgia.  Rainfall  is  unequally  dis- 
tributed as  regards  locality.  There  is  no  marked  rainy 
season,  but  rain  falls  irregularly  throughout  the  year, 
and  further,  varies  greatly  from  year  to  year.  Tropical 
vegetation  is  found  in  the  northern  provinces.  The 
southern  shore  of  Uruguay  is  becoming  a  popular  sum- 
mer resort  for  wealthy  Argentines  and  Brazihans,  its 
chmate  resembling  that  of  the  French  Riviera,  without 
the  latter's  disadvantages  of  sudden  storms,  winter 
frosts,  and  extreme  summer  heat. 

Until  recently,  Uruguay  was  given  over  almost  en- 
tirely to  the  raising  of  cattle  and  sheep,  but  now  its 
future  promises  great  things  in  the  products  of  the  soil. 
The  proportion  of  exports  was:  cattle  products,  forty 
million  dollars,  agricultural  products,  two  million  dol- 
lars; but  this  is  rapidly  changing  in  favor  of  agricul- 
ture. Statistics  show  that  not  an  acre  of  Uruguay's 
seventy-two  thousand  square  miles  is  unproductive. 
There  is  no  fear  of  either  drought  or  frost,  but  so  far 
only  about  three  per  cent,  of  the  territory  is  cultivated 
in  food  stuffs. 

There  are  millions  of  cattle,  mules,  asses,  horses, 
sheep,  and  goats.  An  animal  sanitary  police  has  power 
to  treat,  quarantine,  and  destroy  diseased  animals  and 
prepare  live  stock  statistics.  Jerked  beef  (tasajo)  pro- 
duction is  one  of  the  oldest  established  industries  of 
the  country,  and  this  satisfies  the  taste  of  workers  in 
Brazil,  Cuba,  and  Porto  Rico,  whither  it  is  exported. 


URUGUAY  273 

For  further  export,  the  frozen-beef  establishments  and 
the  beef-extract  factories  consume  much  of  the  cattle 
supply.  Another  great  staple  of  the  hve  stock  industry 
of  Uruguay  is  that  of  the  shearing  and  exportation  of 
wool. 

Millions  of  acres  of  seemingly  virgin  country  are 
given  over  solely  to  sheep  raising  in  Uruguay,  so  it  can 
be  said  to  be  an  important  factor  in  the  world's  wool 
production.  Local  conditions  and  climate,  together 
with  intelligent  methods  of  propagation,  have  brought 
about  a  consistent  increase  of  the  flocks  of  sheep,  that 
has  made  the  wool  clip  of  Uruguay  one  of  the  greatest 
sources  of  wealth  to  the  republic.  To-day  sheep  may 
be  broadly  divided  into  two  classes  —  the  Spanish  and 
the  British,  omitting  the  Asiatic  breeds.  The  finest 
sheep  in  the  world  came  originally  from  Spain,  so  it  was 
most  natural  that  the  ships  of  the  first  colonists  sailing 
from  that  country  for  America  should  carry  numbers  of 
these  animals.  That  was  the  beginning  of  the  wool 
industry  of  South  America.  While  all  the  countries 
produce  wool  from  domestic  sheep,  Uruguay,  Argentina, 
and  Chile  lead  in  the  matter  of  exports.  In  these  three 
countries,  the  greatest  care  has  been  given  to  the  selec- 
tion and  development  of  types  that  thrive  best  under 
local  conditions,  and  no  expense  has  been  spared  in 
searching  Europe  for  the  finest  varieties. 

It  is  interesting  to  note  that  as  early  as  1793,  the 
hacendados  (ranch  owners)  of  Uruguay  reported  that 
there  were  upwards  of  four  hundred  and  fifty  thousand 
head  of  cattle  killed  annually  for  their  hides,  and  that 
efforts  should  be  made  therefore  to  utilize  the  meat 
from  these  cattle  to  put  cattle  raising  on  a  sounder 
economic  basis.    Artigas,  the  national  hero  of  Uruguay, 


274  THE  FUTURE  OF  SOUTH  AMERICA 

was  one  of  the  first  to  recognize  the  value  of  such  a  sug- 
gestion, and  in  1813  he  was  instrumental  in  forming  the 
Junta  de  Agricultura  (Agricultural  Council)  which  had 
power  to  encourage  agricultural  development  and  to 
pass  regulations  for  the  subdivision  of  the  land.  A  be- 
ginning was  made  even  then  of  experimental  farming, 
which  later  has  been  so  wisely  increased.  Gradually, 
favorable  rural  legislation  was  passed.  The  Rural  As- 
sociation of  Uruguay  was  organized  some  years  ago, 
and  out  of  this  movement  have  grown  experimental 
stations,  a  policy  of  animal  sanitation,  a  diffusion  of 
agricultural  education,  and  a  lasting  support  on  the  part 
of  the  government  to  the  extension  of  farm  life. 

One  good  feature  of  the  use  of  the  land  in  Uruguay 
is  the  fact  that  the  rural  holdings  of  the  country  are 
divided  among  a  large  number  of  small  properties. 
Fully  three  quarters  of  these  are  less  than  twelve  hun- 
dred acres  each,  an  extent  which  is  looked  upon  as  a 
minimum  area  for  cattle  raising.  The  predominance  of 
stock  raising,  however,  is  gradually  giving  way  to  an 
increase  of  agriculture,  and  immigration  plays  its  part 
in  this  development.  Later  arrivals  into  the  country 
give  more  attention  to  small  farming,  so  that  as  the 
cattle  industry  increases,  the  supply  of  grains  and  fodder 
crops  will  be  more  likely  to  keep  up  with  it.  There  is 
plenty  of  room  for  both  industries  for  some  time  to 
come. 

For  a  long  time  the  production  of  jerked  beef  was 
the  leading  industry,  the  greater  portion  of  it  being 
exported  to  Brazil,  Cuba,  and  Porto  Rico,  as  has  been 
said,  where  it  is  even  preferred  to  fresh  meat  because 
ice  is  not  necessary  to  preserve  it.  It  is  quite  probable, 
however,  that  as  the  number  of  cattle  killed  for  refrig- 


URUGUAY  275 

erator  meat  increases,  this  latter  industry  will  lead, 
as  the  market  for  its  product  is  almost  unUmited.  Uru- 
guay cannot  yet  compare  with  Argentina  in  its  output  of 
refrigerator  meat,  but  the  process  is  fast  being  recog- 
nized as  more  profitable.  At  least  one  saladero,  or 
salt-meat  packing  house,  has  been  changed  into  a 
chilling  establishment,  and  there  are  many  such  new 
establishments.  Mutton,  it  seems,  may  be  frozen,  but 
beef  is  best  when  chilled  down  just  to  a  preserving 
point,  but  not  frozen  hard. 

Few  people  are  aware  that  much  of  the  beef  extract 
on  the  market  comes  from  the  special  establishments  in 
Uruguay.  The  high  grade  of  the  available  cattle  makes 
it  possible  for  the  finest  article  in  this  hne  to  be  pro- 
duced there.  The  factory  in  Fray  Bentos  has  been 
called  the  "greatest  kitchen  in  the  world."  The  best 
of  the  meat  is  here  subjected  to  scientific  preparation, 
with  the  greatest  possible  care  and  attention  to  detail. 
There  are  chemists,  laboratories,  engineers,  and  authori- 
ties on  technical  matters,  all  engaged  in  cooking  the 
beef  so  as  to  turn  it  out  in  the  best  and  most  accept- 
ah)le  form  as  beef  extract.  For  their  employees,  the 
company  maintains  "almost  a  model  city,  providing 
pleasant  homes,  medical  attendance,  schools,  recrea- 
tion grounds,  and  everything  for  improving  their  physi- 
cal and  moral  welfare.  This  plant,  and  another  on  the 
Argentine  side  of  the  Uruguay  River,  ten  miles  farther 
up,  have  their  own  wharves,  as  ships  of  twenty  feet 
draught  come  up  this  far,  and  the  products  can  be  sent 
direct  to  all  parts  of  the  world." 

As  I  have  suggested,  agriculture  is  on  the  increase  in 
Uruguay.  Tlicre  is  yet  much  land  undeveloped,  and 
as  there  is  no  fear  of  drouth  or  frost,  and  the  land  is 


276  THE  FUTURE  OF  SOUTH  AMERICA 

easily  tilled,  great  crops  are  raised  where  the  settlers 
have  devoted  themselves  to  this  industry.  The  prin- 
cipal crop  is  wheat,  with  corn  a  close  second.  Potatoes 
and  other  vegetables  are  also  raised,  and  lately  the  cul- 
tivation of  the  grape  has  received  a  considerable  im- 
petus. The  raising  of  tobacco  has  also  lately  been 
undertaken  in  a  scientific  way.  Good  Uruguay  land 
sells  for  from  ten  to  thirty  dollars  an  acre. 

Though  making  no  claims  to  being  a  rich  mineral 
country,  Uruguay  probably  has  some  deposits  of  gold, 
silver,  lead,  copper,  manganese,  tin,  and  graphite. 
Petroleum  has  also  been  found.  Gold  is  the  only  min- 
eral worked,  and  that  only  to  a  hmited  extent.  In  the 
southern  part  of  the  country,  there  are  large  deposits 
of  a  granitic  rock  useful  for  paving  purposes,  while 
sandstone  for  building  purposes  is  obtained  from  a  dis- 
trict north  of  the  Rio  Negro.  Some  parts  of  the  coun- 
try contain  limestone.  Agates  and  carnelians  are  found, 
as  well  as  opals  and  amethysts.  The  agates  are  ex- 
ported in  large  quantities  to  Germany,  where  they  are 
used  in  the  manufacture  of  various  fancy  articles. 
Other  semi-precious  stones  are  found  in  great  quanti- 
ties, including  topazes,  garnets,  moonstones,  cat's- 
eyes,  and  others,  very  fascinating  to  see  in  huge  heaps 
in  jewelers'  windows.  However,  compared  with  Brazil, 
Peru,  and  Chile,  the  mineral  deposits  of  Uruguay  are 
almost  nothing. 

The  forests,  such  as  they  are,  are  rich  in  timber  use- 
ful for  building  and  cabinet  making,  much  of  the  wood 
being  noted  for  beauty  and  durability.  A  number  of 
the  trees  have  queer  names  which  would  mean  nothing 
to  the  average  reader,  and  there  are  also  plenty  of  laurel, 
willow,  acacia,  palm,  poplar,  cypress,  and  other  fa- 


URUGUAY  277 

miliar  trees.  A  forestry  survey  is  being  carried  on  by 
the  Government  Division  of  Agriculture,  and  plans  are 
under  way  to  increase  the  area  of  wooded  land.  Mil- 
lions of  trees  from  all  parts  of  the  world  have  been 
planted  on  land  otherwise  of  little  value,  and  now  they 
are  sources  of  timber  supply.  The  conservation  of 
forests  has  also  received  attention,  as  the  reckless 
methods  of  lumbering  were  denuding  the  land  as  in 
other  places  not  so  far  from  home. 

Manufacturing  enterprises  are  growing.  In  Monte- 
video are  several  flour  mills  and  boot  and  shoe  facto- 
ries. Furniture  is  made  in  considerable  quantities. 
Brick  and  tile,  cement,  and  coke  works  are  established, 
and  large  glass  and  bottle  factories.  Several  woolen 
mills  are  in  successful  operation,  and  some  cotton  and 
Unen  cloths  are  woven.  The  manufacturing  interests 
are  chiefly,  however,  for  local  demand,  and  cannot 
begin  to  meet  the  market,  which  must  depend  almost 
altogether  upon  the  importation  of  foreign  goods.  In 
regard  to  the  cement,  it  is  interesting  to  note  that  a 
local  merchant  just  before  my  visit  reckoned  carefully 
the  comparative  cost  to  the  consumer  of  the  foreign  and 
the  local  product.  After  itemizing  the  ocean  freight, 
insurance,  customs,  handling  expenses,  etc.,  he  stated 
that  the  total  cost  of  a  barrel  of  foreign  cement  in 
Montevideo  was  $3.47,  and  triumphantly  announced 
that  the  local  factory  could  put  the  same  quality  on 
the  market  for  83.46!  This  very  well  illustrates  the 
close  figuring  and  loyalty  of  Uruguayan  people. 

Railways  and  interior  waterways  furnish  means  of 
transportation,  and  the  railways  are  constantly  being 
extended.  Uruguay  takes  second  rank  among  the 
Latin-American  republics  in  its  proportion  of  railway 


278  THE  FUTURE  OF  SOUTH  AMERICA 

mileage  to  square  miles  of  territory.  About  half  the 
length  of  railway  is  under  State  guarantee.  The  short, 
branch-uniting  Rivera  station  with  the  frontier,  thus 
establishing  international  traffic  with  Brazil,  has  been 
finished. 

The  extensive  river  system  of  Uruguay  provides  the 
country  with  over  seven  hundred  miles  of  waterways, 
the  most  important  being  the  Plata  and  Uruguay  riv- 
ers. On  the  Uruguay  there  are  ten  ports  open  to  inter- 
oceanic  trade  —  Carmelo,  Nueva  Palmira,  Soriano, 
Fray  Bentos,  Nuevo  Berlin,  Casa  Blanca,  Paysandu, 
Nueva  Paysandu,  Salto,  and  Santa  Rosa.  On  the  Rio 
Negro  is  the  interior  port  of  Mercedes,  and  on  the  San 
Salvador  River  a  port  of  the  same  name.  Vessels  of 
fourteen  feet  draft  can  ascend  the  Uruguay  as  far  as  the 
city  of  Paysandu,  and  vessels  of  nine  feet  draft  can  go 
farther.  Fifteen  other  rivers  are  all  navigable  for  short 
distances  for  ocean-going  steamers,  and  for  small  craft 
into  the  interior  of  the  country. 

The  only  lake  of  any  importance  is  Lake  Merim,  sit- 
uated on  the  border  of  Brazil,  and  this  has  a  regular 
fine  of  steamers  communicating  with  the  different 
towns  along  its  shores.  Uruguay's  steamship  com- 
munication with  other  parts  of  the  world  occurs  with 
frequency  and  regularity.  From  Montevideo,  the  chief 
port  of  the  republic,  there  are,  as  has  been  said,  daily 
steamers  across  the  Plata  to  Buenos  Aires,  with  all 
modern  comforts,  conveniences,  and  improvements. 
Up  the  Plata  to  ports  in  Paraguay  and  Brazil  are  avail- 
able many  steamers  or  steamer  connections.  Several 
local  transportation  lines  along  the  Atlantic  coast  to 
Brazilian  ports  make  frequent  departures  and  arrivals, 
and  all  the  transatlantic  steamship  lines,  after  leav- 


URUGUAY  279 

ing  Montevideo,  touch  at  Santos,  Rio  de  Janeiro,  and 
Bahia  before  proceeding  to  Europe.  There  are  now 
more  than  twenty-four  of  these  lines,  representing 
practically  all  nations  of  Europe  having  a  foreign  com- 
merce. It  is  interesting  to  see,  in  the  harbor  of  Monte- 
video, British,  French,  Spanish,  German,  Austrian, 
Dutch,  Belgian,  and  other  flags,  but  one  misses  the 
Stars  and  Stripes.  The  steamers  of  the  companies 
registered  under  these  flags  are  modern,  luxurious,  and 
convenient.  On  the  average  a  first-class  steamer  leaves 
Montevideo  for  Europe  every  two  or  three  days.  For 
New  York  there  is  only  a  weekly  service,  but  once  a 
fortnight  a  through  steamer  is  scheduled  between  these 
ports  without  change. 

Education,  as  in  all  these  South  American  countries, 
is  inadequate,  but  facilities  are  constantly  increasing. 
Primary  education  is  obhgatory  in  Uruguay.  In  1912, 
with  an  estimated  population  of  one  million  one  hun- 
dred thousand,  there  were  in  the  republic  about  nine 
hundred  and  fifty  pubUc  schools  with  an  attendance  of 
nearly  three  hundred  thousand  pupils.  There  are  gov- 
ernment normal  schools  for  males  and  females,  schools 
of  arts  and  crafts,  and  a  military  college.  The  capital 
city  has  a  fine  university,  with  departments  of  law,  the 
sciences,  medicine,  mathematics,  agriculture,  and 
commerce. 

The  country  became  a  republic  in  1830,  and  the  con- 
stitution promulgated  in  July  of  that  year  is  in  force. 
The  Senate  and  House  of  Representatives  compose  the 
General  Assembly,  in  which  all  legislative  power  is 
vested,  and  meet  annually  from  February  15  to  June  15. 
Representatives,  the  number  of  whom  varies  with  the 
population,   are  elected  directly   by   popular  vote  in 


280  THE  FUTURE  OF  SOUTH  AMERICA 

the  proportion  of  one  for  every  three  thousand  inhabit- 
ants or  fraction  exceeding  two  thousand,  and  for  a 
term  of  three  years.  The  Senate  consists  of  nineteen 
members,  one  for  each  department,  who  are  elected  in- 
directly for  a  term  of  six  years.  This  body  is  renewed 
by  thirds  every  two  years.  Every  citizen  over  twenty 
years  of  age,  who  is  physically  and  mentally  able  to  do 
so,  and  is  registered,  is  entitled  to  vote.  During  recess, 
a  permanent  committee,  composed  of  two  senators  and 
five  representatives,  takes  the  place  of  Congress,  their 
duty  being  to  assist  and  advise  the  President  on  all 
matters  legislative,  and  to  act  for  the  General  Assembly. 

The  President  is  chosen  by  the  General  Assembly  for 
a  term  of  four  years,  and  may  not  be  reelected  for  the 
term  immediately  following  his  own.  There  is  no  Vice- 
president,  so  that  the  presiding  officer  of  the  Senate 
takes  the  place  of  the  President,  in  case  of  his  death  or 
disability.  There  are  now  seven  Cabinet  departments, 
with  an  officer  at  the  head  of  each.  These  ministers 
are  appointed  by  the  President,  but  are  responsible 
both  to  the  President  and  to  the  Congress,  or  General 
Assembly. 

To  sum  up,  Uruguay  has  all  the  material  conditions 
for  prosperity  and  happiness,  an  abundance  of  good 
land,  a  temperate  and  genial  climate,  waterways  for 
traffic  provided  in  her  rivers,  and  artificial  iron  high- 
ways on  land,  supplied  by  enterprising  British  capital- 
ists. What  is  to  be  said  of  her  inhabitants?  Until 
recent  years  they  were  almost  entirely  of  Spanish  stock. 
The  warlike  Indians  have  been  killed  off.  Although  a 
few  negroes  are  to  be  found  along  the  Brazilian  frontier, 
yet  the  great  majority  of  the  people  are  of  European 
stock.    Of  late  years  a  steady  stream  of  immigrants  has 


URUGUAY  281 

come  from  Ital}^  though  not  in  such  numbers  as  to 
Argentina.  A  smaller  number  comes  from  Spain,  in- 
cluding, fortunately,  many  industrious  Basques.  Many 
English  and  Germans  are  in  business  in  the  cities. 

Probably  a  fifth  of  the  population  are  of  foreign 
birth,  which  is  not  a  large  proportion  when  compared 
with  the  foreign-born  population  of  either  Massachu- 
setts or  Rhode  Island.  The  Uruguayan  of  the  present 
day  is,  then,  a  colonial  Spaniard,  modified  by  the  con- 
ditions of  his  life  during  the  past  ninety  j'-ears.  He 
likes  the  country,  and  is  strong,  active,  and  lawless, 
like  the  Guacho  of  Argentina.  Having  settled  down 
now  to  a  more  quiet  way  of  living,  he  still  retains  some- 
thing of  these  breezy,  audacious,  yet  frank  and  generous 
qualities.  He  is  intensely  proud  of  his  country,  and 
Englishmen  and  Germans  settled  in  Montevideo  say 
he  is  a  good  fellow. 

There  is  less  wealth  and  ostentation  in  Montevideo 
than  in  Buenos  Aires,  and  the  residents  of  the  latter 
city  like  to  come  over  to  this  Uruguayan  capital  for 
"rest  and  soul  expansion  among  the  leisurely  and  dig- 
nified Alontevideans."  The  Montevideans  do  not  resent 
this  suggestion,  because,  though  the  city  seems  rest- 
ful, it  does  not  seem  dead.  Some  of  the  homes,  es- 
pecially on  the  outskirts  of  the  cities,  are  gems  of  old 
Spanish  architecture. 

The  commercial  traveler,  or  the  student  of  this  region 
of  La  Plata,  must  reahze  that  a  great  unmigration 
movement  is  under  way,  and  that  this  movement  will 
increase  until  all  these  empty  spaces  are  filled  as  our 
o\ra  northwest  has  been  filled  with  settlers  and  home- 
makers.  He  must  also  recognize  the  fact  that  with 
better  governments  and  with  statesmen  increasingly 


282  THE   FUTURE   OF   SOUTH  AMERICA 

interested  in  material  and  industrial  conditions,  these 
countries  are  growing,  just  as  our  own  country  grew. 
This  fact  should  be  driven  home  to  every  manufacturer 
or  commercial  association  looking  eagerly  toward  the 
South  American  markets.  These  countries  call  for 
just  those  supplies  which  our  own  country  needed  for 
success  in  conquering  the  wilderness.  We  already 
know,  or  ought  to  know,  what  the  people  under  such 
conditions  want.  We  ought  to  be  the  first  to  satisfy 
their  wants. 

But  we  must  not  be  in  a  hurry.  The  man  who  looks 
at  South  America  with  an  eye  for  immediate  profit 
and  no  more,  might  better  stay  at  home.  He  must  be 
willing  to  work  for  the  establishment  of  a  reputation 
for  his  goods  and  be  determined  to  stick  for  at  least 
five  years.  The  lack  of  direct  trade  facilities  with  the 
United  States  will  continue  to  be  a  great  drawback  to 
selling  goods  in  any  South  American  country.  The 
customer  may  say  to  you:  ''We  would  like  to  trade 
with  you,  for  we  like  Yankee-made  goods,  but  how  can 
trade  be  kept  up  when  there  is  not  better  regular 
steamer  service  between  the  United  States  and  our 
shores?  We  have  good  and  cheap  transportation  facili- 
ties to  Europe.  When  we  buy  there,  we  know  that  our 
purchases  will  arrive  within  a  reasonable  time  after  the 
order  is  given;  but  when  we  buy  from  the  United  States, 
we  cannot  tell  within  six  months  when  our  goods  may 
arrive."  North  Americans  also  have  much  to  learn  in 
the  line  of  careful  packing  of  goods  which  may  have 
to  be  discharged  from  lighters,  and  perhaps  continue 
their  journey  on  mule  back. 

Some  one  has  well  asked: 

"How  many  of  us,  who  have  taken  great  pride  in 


i 


URUGUAY  283 

that  vastly  esteemed  policy  of  ours  knowTi  as  the  Mon- 
roe Doctrme,  have  stopped  to  speculate  as  to  how  the 
other  parties  concerned  may  feel?  How  many  of  us 
have  studied  as  to  the  feeling  toward  us  existing  in  the 
minds  of  the  South  Americans?  Just  how  do  we  stand 
with  the  trade  of  South  America?" 

Perhaps  here,  in  a  discussion  of  Uruguay,  as  well  as  at 
any  other  time,  it  is  appropriate  to  give  the  answer. 
We  have  had  a  share  in  the  South  American  trade,  but 
this  is  not  owing  to  our  brilliancy.  Europe  captured 
the  cream,  for,  although  no  less  arrogant  in  their  pride 
than  are  we,  the  English  and  Germans  are  less  stub- 
born. They  are  more  willing  to  set  aside  personal  feel- 
ing, and  concede  something  to  the  personality  of  their 
prospective  customers.  It  is  undoubtedly  true  that 
the  American  exporter  is  mcrel}^  tolerated  in  South 
America,  that  he  enjoys  no  favor  through  a  feeling  of 
kinship,  nor  indeed  through  anything  that  he  has  done 
for  South  America.  He  must,  therefore,  make  great 
efforts  to  ingratiate  himself  with  his  customers  and  to 
overcome  this  long-standing  prejudice  on  their  part. 

Then  again,  in  calling  ourselves  Americans,  we  offend 
the  dehcate  sensibilities  of  the  South  Americans,  be- 
cause they  argue,  and  rightly,  that  that  name  is  no 
more  peculiar  to  us  than  to  them,  or  indeed,  to  the 
people  of  Canada  or  Mexico,  who,  by  the  way,  have 
the  same  feeling  about  it.  The  business  man  seeking 
trade  in  these  southern  republics  should  therefore  avoid 
using  this  name  for  himself,  as  it  certainly  raises 
against  him  at  once  a  strong  prejudice.  If  he  fails  to 
oijserve  this  very  essential  point,  he  places  himself  on  a 
par  witli  that  manufacturer  and  exporter  of  gas  engines 
wh(j  was  eager  to  get  his  goods  into  the  markets  of  the 


284  THE  FUTURE  OF  SOUTH  AMERICA 

United  States  of  Brazil.  It  is  an  old  story,  but  will  bear 
repetition.  Not  knowing,  or  at  least  not  heeding,  the 
fact  that  foreign  exporters  sent  business  diplomats,  not 
ordinary  drummers,  to  South  America,  he  thought  to 
accomplish  his  purpose  through  the  mail.  He  there- 
fore prepared  a  very  elaborate  and  profusely  illustrated 
catalogue,  which,  thinking  to  pay  his  prospective  cus- 
tomers a  delicate  compliment,  he  had  printed  in  Span- 
ish. As  the  native  tongue  of  the  Brazilians  is  Portu- 
guese and  an  acute  jealousy  exists  toward  anything 
Castilian,  this  was  hardly  a  tactful  move.  If  you  can- 
not speak  Portuguese  when  in  Brazil,  better  speak 
English  or  French,  as  they  seem  to  resent  Spanish. 

In  spite  of  the  fact  that  Spanish  is  no  more  a  strange 
tongue  to  us  than  it  is  to  the  British  and  Germans  who 
have  so  far  distanced  us  in  the  race  for  South  American 
trade,  the  Europeans  have  gained  their  advantage  by 
their  adaptability  in  dealing  with  those  of  another 
tongue.  They  have  been  willing  to  study  Spanish  and 
Portuguese,  while  we  have  insisted  that  our  South 
American  neighbors  should  communicate  with  us  in 
our  own  language.  Our  reward  is  this.  When  South 
America  wants  money  it  does  not  turn  to  its  would-be 
Big  Brother,  but  to  its  French,  English,  or  German 
friend,  who  very  willingly  and  promptly  mortgages  all 
Little  Brother's  resources.  These  European  friends 
also  exact  a  good  tribute  from  Big  Brother,  when  he 
tries  to  do  a  little  trading,  because  they  are  in  control 
of  the  mediums  of  exchange. 

Europe  is  nearer  to  South  America  than  is  the 
United  States,  and  this  tends  to  cause  the  Argentines, 
Brazilians,  and  Uruguayans  to  look  upon  us  as  stran- 
gers rather  than  the  Europeans.    In  sailing  from  New 


URUGUAY  285 

York  to  anj^  South  American  port,  it  is  necessan',  in 
order  to  take  advantage  of  the  trade  winds,  almost  to 
come  in  sight  of  the  Canary  Ishmds,  and  even  in  steam- 
ing do^Ti,  Cape  St.  Roque,  much  farther  east  than  New 
York,  must  be  rounded.  Few  people  realize  that  New 
York  is  straight  north  of  the  western  coast  of  South 
America,  and  that  the  latter  is  really  southeast,  rather 
than  south,  of  North  America.  Therefore  a  steamer 
voyage  from  ]\Iontevideo  to  most  European  ports  is  no 
longer  than  to  New  York,  and  to  Lisbon  is  much 
shorter. 

Naturally,  then,  the  luxury-loving  descendants  of 
the  Spanish  greatly  prefer  to  go  to  London,  Paris,  or 
Lisbon,  and  hence  know  the  people  of  these  European 
cities  better  than  they  know  the  people  of  New  York. 
Once  there,  the  shopkeepers  of  these  places  make  it 
their  business  to  see  that  these  customers  have  no  loose 
change  to  spend,  if  they  should  later  come  across  to 
New  York.  Some  one  has  well  expressed  it  thus: 
"Europe  occupies  a  corner  site  at  the  intersection  of 
busy  streets  in  the  market  place  of  the  world,  and  its 
barkers  are  always  in  good  voice;  while  Uncle  Sam's 
little  shop  is  up  a  side  alley,  and  he  pipes  his  wares  in  a 
feeble  treble." 

There  is  yet  another  important  fact  which  deter- 
mines the  attitude  of  the  South  Americans  toward  us. 
Europe  has  never,  to  put  it  mildly,  tried  to  have  us 
stand  well  in  the  estimation  of  South  America.  Rarely 
will  you  see  in  a  South  American  newspaper  a  news 
report  of  any  great  or  worthy  achievement  in  the 
United  States,  whether  in  the  line  of  history,  science, 
philanthropy,  or  literature.  But  when  it  comes  to 
anything  in  the  line  of  scandal,  a  bank  defalcation,  a 


286  THE  FUTURE  OF  SOUTH  AMERICA 

political  disgrace,  or  something  derogatory  to  the 
government  or  people  of  the  United  States,  long  dis- 
patches about  it  will  reach  the  South  American  press. 

When,  therefore,  our  business  man  goes  scouting  for 
South  American  trade,  he  must  face  these  conditions, 
and  govern  himself  accordingly.  He  must  realize  that 
he  will  be  received  as  a  stranger,  not  as  a  friend;  that 
he  will  have  to  live  down  preconceived  unfavorable 
opinions  against  him.  He  must  be  patient  and  tactful 
in  trying  to  emphasize,  by  his  manner  and  treatment 
of  the  South  Americans,  the  fact  that  these  prejudices 
of  theirs  are  unjust.  Moreover,  all  of  us  should  make 
clear  that  the  Monroe  Doctrine  is,  on  our  part,  not  a 
condescension  to  inferiors,  whom  we  design  to  take 
possession  of,  but  only  the  indication  of  our  sincere 
friendship  and  confidence  toward  equals,  whom  we 
would  have  as  friends  and  comrades.  Such  an  attitude 
is  especially  important  when  dealing  with  the  people 
of  a  little  country  like  Uruguay. 

Uruguay  does  not  ask  for  our  sympathy.  It  is  al- 
most in  Argentina's  class  —  absolutely  independent. 
Uruguay  has  every  natural  advantage  that  Argentina 
has,  and  perhaps  a  more  industrious  and  frugal  people. 
I  am  fond  of  the  Uruguayans  and  believe  that  consider- 
ing the  size  of  their  country,  their  future  is  very  bright. 
They  have  the  Holland  of  South  America. 

I  also  beheve  that  Uruguay's  future  is  to  be  prosper- 
ous because  her  people  are  progressive  and  stand  for 
equal  opportunities  for  one  another.  In  social  move- 
ments and  in  the  separation  of  church  and  State, 
Uruguay  is  the  most  advanced  of  all  Latin-American 
countries.    To  my  mind  this  is  greatly  in  its  favor. 


CHAPTER  XVII 
Brazil 

Argentina  is  at  present  the  strongest  of  the  Latin- 
American  countries,  but  it  is  not  the  largest  nor  the 
richest  in  natural  resources,  for  in  both  these  regards 
Brazil  leads.  When  our  bankers  study  the  extent, 
fertility,  minerals,  water  powers,  and  other  natural 
assets  of  South  America,  they  must  treat  with  great 
respect  Brazil's  plea  for  more  credit. 

In  some  ways  studying  South  America  is  like  study- 
ing astronomy.  Astronomical  distances  are  inconceiv- 
able. South  American  distances  are  overwhelming. 
This  fact  not  only  applies  to  the  continent  as  a  whole, 
but  to  the  separate  countries  as  well,  especially  to  the 
United  States  of  Brazil,  which  is  of  itself  integrally 
greater,  physically  richer,  and  even  more  beautiful 
than  the  United  States  of  America!  Think  of  any 
WTiter  trynng  to  cover  the  United  States  of  America  in 
one  article  of  three  thousand  words!  Yet  I  have 
kno\\Ti  editors  to  return  splendid  manuscripts  on  parts 
of  Brazil,  "because  the  country  was  described  in  a 
previous  number!" 

Manufacturers  must  appreciate  these  facts  and  not 
permit  the  same  man  to  cover  Brazil  who  "covers" 
the  rest  of  South  America.  This  great  southern  con- 
tinent can  provide  work  for  four  good  salesmen,  but 
by  all  means  every  live  house  should  have  three:  one 


288  THE  FUTURE  OF  SOUTH  AMERICA 

for  Argentina,  one  for  the  West  Coast,  and  one  for 
Brazil.  It  is  also  a  mistake  to  give  all  of  Brazil  to  any 
one  agency.  Continually  keep  in  mind  that  Brazil  is 
larger  than  all  of  our  forty-eight  States  combined,  with 
much  more  varied  climates  and  needs.  Besides,  most 
of  its  twenty-one  States  have  little  governments  of 
their  own,  with  separate  ports,  tariffs,  and  other  regu- 
lations. But  aside  from  these  things,  there  are  the 
vastness,  wealth,  and  beauty  of  Brazil,  which  few  seem 
to  realize. 

The  journey  from  Rio  Grande  do  Sul,  the  most 
southerly  port  of  Brazil,  to  Para,  the  most  northerly 
port,  takes  nearly  ten  days  on  an  average  steamer, 
without  making  a  stop.  This  means  that  Para  is  half- 
way between  Brazil's  southern  port  and  New  York 
City!  Even  the  railroad  trip  from  Montevideo  to  Rio 
Janeiro,  covering  the  southern  portion  of  Brazil,  is  over 
a  thousand  miles  long,  or  nearly  the  distance  from  New 
York  to  Minneapolis,  or  from  Chicago  to  New  Orleans. 
Yet  this  road  covers  only  the  temperate  and  southern 
portion  of  Brazil,  about  which  we  have  been  taught 
little  or  nothing. 

If  you  look  at  an  outline  map  of  South  America 
with  the  boundaries  of  only  Brazil  marked,  you  will 
notice  that  this  country  is  like  a  South  America  within 
a  South  America,  so  nearly  does  its  shape  approach  that 
of  the  continent.  The  coast  line  is,  of  course,  identical, 
and  the  western  projection  and  pointed  southern  part 
are  very  similar.  Brazil  occupies  one  half  of  the  con- 
tinent, its  area  being  equal  to  that  of  our  forty-eight 
States  with  four  additional  New  York  States  added. 
Brazil  is  nearly  one  hundred  times  as  large  as  Portugal, 
its  mother  country.    In  round  figures,  Brazil  has  a  coast 


BRAZIL  289 

line  of  five  thousand  miles,  and  a  land  frontier  of  ten 
thousand  miles.  The  coast  is  equivalent  in  length  to 
that  connecting  New  Orleans  and  the  northern  extrem- 
ity of  Labrador.  Every  section  of  this  great  land  has 
money-making  possibilities. 

A  comparison  of  population,  however,  tells  a  different 
story.  A  suggestive  contrast  is  found  by  placing  India, 
which  lies  on  almost  the  opposite  side  of  the  globe,  in 
comparison  with  Brazil,  for  each  is  in  its  way  a  typical 
representative  of  Old  and  New  World  conditions. 
Were  Brazil  as  densely  populated  as  India,  it  would 
carry  five  hundred  and  sixty-one  million  people  in 
place  of  the  estimated  twenty-four  million  now  resi- 
dent. A  curious  feature  of  Brazil  is  that  with  its  im- 
mense area  and  small  population,  it  is  hampered  in  its 
development  by  the  untamed  and  almost  impenetrable 
luxuriance  of  vegetation!  This  vegetation  is  so  rank 
that  the  small  population  carmot  keep  it  under  con- 
trol, and  wide  stretches  of  the  country  are  accessible 
only  b}--  the  aid  of  the  natural  highways  of  the  great 
river  systems.  In  Brazil  not  one  fiftieth  of  the  land 
has  been  subject  to  the  care  or  cultivation  of  man. 
Hence  I  say  its  money-making  opportunities  are  un- 
excelled. 

Brazil  possesses  the  most  remarkable  S3^stem  of  water 
highwaj's  in  the  world,  which  will  some  day  be  valu- 
able for  transportation,  irrigation,  and  water  power. 
These  rivers  are  almost  as  important  as  is  the  vast  ex- 
tent of  territory  possessed  by  the  republic.  Try  to 
imagine  a  river  more  than  thirty-four  hundred  miles 
in  length,  with  its  source  in  the  Peruvian  Andes, 
sixteen  hundred  feet  above  the  level  of  the  sea,  with 
vast  tributaries,   themselves   innn  one  to  two  thou- 


290  THE  FUTURE  OF  SOUTH  AMERICA 

sand  miles  long,  draining  a  territory  two  thirds  as 
large  as  our  United  States!  This  region  is  so  rich  and 
fertile  that  the  great  scientist  Von  Humboldt  said  of 
it:  "It  is  here  that  one  day,  sooner  or  later,  will  con- 
centrate the  civilization  of  the  globe."  This  Amazon 
River  is  a  mile  and  a  half  wide  at  its  last  Brazilian  port 
on  the  west,  broadens  until  it  attains  a  width  of  one 
hundred  and  fifty  miles  at  its  northern  mouth  alone, 
and  discharges  into  the  Atlantic  a  volume  of  water 
more  than  four  times  as  great  as  the  outpour  of  the 
Mississippi.  It  is  navigable,  and  is  now  actually  being 
navigated  by  ocean  liners  for  two  thousand  miles,  clear 
across  Brazil  from  the  Atlantic  Ocean  to  Iquitos  in 
Peru,  a  Pacific  coast  country.  This  river  is  not  attrac- 
tive to  me;  but  it  offers  great  opportunities  for  money 
making  to  the  man  with  courage  and  a  sound  physique. 

As  to  the  natural  divisions  and  general  resources  of 
this  country,  it  may  be  said  that  the  whole  southeastern 
part  from  latitude  5°  south  to  latitude  30°  south  is 
mountainous  or  undulating,  with  here  and  there  wide 
valleys,  valuable  for  cultivation,  pasture,  or  timber, 
and  containing  mineral  wealth.  The  northwestern 
part  and  the  whole  plain  of  the  Amazon  are  quite  flat, 
most  of  the  latter  being  a  forest  wilderness.  Along  the 
north  coast  there  are  a  few  arid  districts,  but  nowhere 
such  deserts  as  cover  so  large  a  space  in  the  countries 
of  the  Andes.  The  only  parts  which  are  as  yet  even 
comparatively  well  peopled  are  the  coast  strip  and  its 
fertile  valleys,  the  most  southern  States,  and  the  State 
of  Minas  Geraes,  a  name  which  signifies  "General 
Mines,"  from  its  industry.  This  State  offers  great 
money-making  opportunities  in  mining. 

As  to  the  people  of  this  great  republic,  the  true 


BRAZIL  291 

Brazilian  white  nation  can  hardly  be  reckoned  at  more 
than  eight  million,  a  very  small  part  of  the  twenty-four 
million  given  in  the  latest  reports  as  the  population. 
The  rest  of  the  inhabitants  are  Indians,  pure  blacks, 
and  half-breeds.  The  early  settlers  came  without 
families  and  intermarried  "freelj'  and  frequently"  with 
the  Indians,  and  later  with  the  negroes,  who  began  to 
be  imported  as  slaves  in  1600.  To  these  mixed  races 
may  be  attributed  in  part  the  "full  share  of  armed  ris- 
ings and  civil  wars"  which  Brazil  has  to  record  in  her 
history. 

To  the  southern  part  in  particular  many  Europeans 
have  flocked,  as  there  they  can  work,  thrive,  and  be 
happy.  In  southern  Brazil  are  many  Germans,  while 
the  labor  on  the  great  coffee  estates  is  almost  entirely 
Italian.  There  are  of  course  many  Portuguese,  some 
English,  and  a  few  North  Americans.  The  afflux  of 
SjTians  —  mostly  traveling  pedlers  or  small  dealers 
as  in  our  o%\ti  country  —  that  has  come  to  South 
America  and  the  West  Indies  during  the  past  few  years 
is  "a  new  and  curious  feature  in  the  currents  of  ethnic 
movements  that  mark  our  time." 

The  climate  of  this  great  country  is  of  course  varied 
according  to  location.  When  I  went  to  school,  the 
geographies  stated  that  ninety-three  per  cent,  of  Brazil 
lies  within  the  tropics,  the  remaining  seven  per  cent, 
being  in  the  extreme  southern  part.  I  was  told  noth- 
ing ai)Out  the  high  table-lands  that  give  to  a  large  part 
of  Brazil  a  temperate  climate.  Yet  Brazil  has  a  great 
plateau  area,  and  the  climate  of  these  plateaus  is  de- 
lightful, the  sun's  heat  being  tempered  by  the  elevation. 
In  southern  Brazil  and  the  middle  Amazon  valley, 
seasons  arc  fairly  well  marked,  being,  of  course,  the 


292  THE   FUTURE  OF  SOUTH  AMERICA 

reverse  of  those  in  the  United  States.  In  other  parts  of 
the  country,  the  only  recognized  seasons  are  a  wet  and  a 
dry.  Owing  to  the  influence  of  the  trade  winds,  the 
whole  of  Brazil  is  subject  to  heavy  rainfall,  precipita- 
tion increasing  as  the  interior  is  approached  where  the 
moist  trade  winds  strike  the  plateaus.  Nearer  the 
equator  the  division  into  a  wet  and  dfy  season  is  not 
so  marked.  Para  holds  the  barmer  for  precipitation, 
with  one  hundred  and  twenty  inches  annually  in  two 
hundred  and  ninety-one  days  of  rain,  three  fourths  of 
the  rainfall  being  in  the  months  from  January  to  June. 

Yet  this  very  excess  of  heat  and  moisture  causes  such 
a  wonderful  vegetable  growth  as  is  found  in  scarcely 
any  other  part  of  the  world,  a  growth  which  will  some 
day  yield  great  money  profits  to  exploiters.  Every 
inch  of  the  ground  is  covered  with  some  living  and  grow- 
ing plant.  Vines  festoon  the  branches  of  trees,  and 
ferns  and  mosses  cover  fallen  logs.  After  a  patch  of 
woodland  has  been  cut  down  to  the  very  ground,  in 
six  years  the  soil  will  be  so  covered  with  a  growth  of 
trees  and  shrubs  that  the  spot  can  hardly  be  distin- 
guished from  the  rest  of  the  forest.  This  has  been  the 
case  in  the  giving  up  of  some  of  the  great  coffee  planta- 
tions. An  immense  variety  of  vegetable  life  is  also 
found.  Within  a  radius  of  a  few  yards  may  be  seen 
twenty  kinds  of  trees  growing  side  by  side.  Certainly 
it  seems  the  height  of  inefficiency  for  man  to  waste  so 
much  time  and  energy  in  cultivating  the  northern 
temperate  regions,  when  such  a  rich  fertile  area  is  lying 
absolutely  idle. 

But  the  effect  of  the  climate  on  the  people  is  well 
illustrated  by  the  following  statement  of  one  of  my 
friends  in  Bahia: 


BRAZIL  293 

"It  is  all  very  well  to  talk  about  the  great  oppor- 
tunities of  the  tropics.  Some  day  they  may  exist,  but 
not  to-day.  The  warm,  humid  climate  of  northern 
Brazil  takes  the  ambition  out  of  people.  Even  when  a 
good  active  Yankee  comes  down  here,  he  soon  becomes 
as  lazy  as  the  rest  of  us.  It  is  a  mistake  for  you  North 
Americans  to  try  to  do  much  here  —  especially  those 
of  you  who  are  light -complexioned  and  who  do  not  tan. 

"The  difference  between  the  climatic  effects  of  north- 
ern and  southern  Brazil  has  been  well  illustrated  to  me 
during  the  past  thirty  days.  I  was  in  Sao  Paulo  and 
I  saw  a  very  little  boy  come  into  to\m  on  a  great  horse 
bareback.  Just  before  reaching  the  cit}',  he  dropped 
his  whip.  As  I  saw  him  dismount,  I  wondered  how  he 
would  ever  get  back  on  again.  I  ordered  my  chauffeur 
to  stop  while  I  watched.  The  little  boy  picked  up  the 
whip  and  looked  about.  There  was  not  a  stone  nor 
a  stump  anjn^-here.  Only  prairies  could  be  seen  in  every 
direction.  Was  he  stuck?  Not  much!  He  simply 
shinned  up  one  of  the  horse's  front  legs  as  one  would 
shin  a  pole,  grabbing  the  horse's  mane  to  help  himself 
along.  In  less  than  a  minute  he  was  on  the  animal's 
back. 

"Contrasting  with  this,  I  employed  a  big  boy  in 
northern  Brazil  who  waited  for  an  hour  alongside  of  the 
road  for  some  one  to  come  along  to  help  him  on  a  smaller 
horse.  There  is  certainly  something  about  the  climate 
here  in  the  tropics  which  takes  the  ginger  out  of  all  of 
us.  Did  you  ever  hear  of  a  great  inventor,  artist,  writer, 
or  any  other  man  of  real  note  who  did  his  work  in  the 
tropics?" 

The  forests  produce  many  valuable  trees,  such  as 
rosewood,  satinwood,  cedar,  and  mahogany.    A  most 


294  THE  FUTURE  OF  SOUTH  AMERICA 

useful  tree  is  called  the  carnahuba.  "Its  roots  are  pos- 
sessed of  the  same  medicinal  properties  as  sarsaparilla; 
it  yields  a  large  quantity  of  lumber  for  building  pur- 
poses; from  the  leaves  is  obtained  a  wax  from  whiclj 
candles  are  made;  and  the  straw  is  used  in  the  manu- 
facture of  hats,  brooms,  mats,  and  thatching.  The 
fruit  of  this  tree  is  food  for  cattle;  the  nut  is  sometimes 
used  as  a  substitute  for  coffee,  and  the  pith  of  the  stem 
answers  the  purpose  of  cork.  From  various  parts  of 
the  tree  are  obtained  vinegar,  wine,  salt,  an  alkali  used 
in  making  soap,  flour,  a  liquid  resembling  the  milk  of 
the  cocoanut,  a  starch  similar  to  sago,  and  a  saccharine 
substance;  musical  instruments  and  pumps  are  made 
from  the  wood  of  the  stem ! "  If  this  sounds  like  a  fairy 
story,  the  reader  is  referred  to  the  impartial  and  ultra- 
authentic  Foreign  Commercial  Guide  to  South  America. 

Brazil  is  the  country  of  tonka  beans,  arrowroot, 
ginger,  black  pepper,  balsam,  tapioca,  gum  copal,  in- 
digo, and  Brazil  nuts,  all  growing  wild,  not  to  mention 
the  greatest  product,  rubber.  The  trees  producing 
rubber  are  not  usually  found  in  groves,  but  are  scat- 
tered singly  in  the  forest,  sometimes  not  more  than 
one  hundred  or  one  hundred  and  fifty  trees  in  a  section 
of  about  one  hundred  acres,  which  is  as  much  territory 
as  one  man  can  attend  to.  Through  these  sections  run 
paths  called  estradas,  leading  from  one  tree  to  another. 
The  rubber  gatherer  sets  out  in  the  morning  and  makes 
several  incisions  from  four  to  six  inches  apart  around 
each  tree.  Under  these  he  hangs  tins  to  catch  the 
sap.  His  round  of  three  or  four  miles  may  take  him 
half  a  day,  and  he  may  begin  the  gathering  after  noon. 
He  collects  the  fluid  called  latex  in  a  pail,  obtaining 
eight  or  ten  quarts  in  all,  which  will  probably  produce 


BRAZIL  295 

as  many  pounds  of  rubber.  This  latex  must  be  smoked 
over  a  wood  fire  and  coagulated  on  a  sort  of  ladle  twirled 
over  the  smoke.  Fresh  coats  are  added  as  one  dries, 
until  a  lump  is  formed  weighing  anywhere  from  five  to 
a  hundred  pounds.  The  great  lumps,  or  balls,  of  rub- 
ber are  collected  and  taken  to  the  nearest  river  bank, 
where  they  are  carried  down  to  some  port  for  export, 
probably  Para.  Some  trees  are  cut  down  and  all  the 
sap  removed,  but  this  waste  is  now  being  reduced  to 
some  extent,  b}^  forest  conservation. 

The  man  who  does  this  work  probably  works  for  a 
contractor  who  employs  several  hundreds,  and  the 
stories  of  the  atrocities  committed  by  these  contractors, 
who  have  compelled  the  defenceless  Indians  to  work 
for  them  without  pay  and  have  inflicted  all  sorts  of 
tortures  upon  them  and  their  families,  rival  those  of 
the  worst  savages  in  any  country.  Though  these 
cruelties  have  been  lessened  for  the  time  being,  con- 
stant vigilance  must  ])e  exercised  to  prevent  these  sup- 
posedly' civilized  men  from  allowing  their  greed  and 
inhumanity  to  control  their  intercourse  with  their 
workmen,  supposedly  uncivilized. 

Rubber  was  first  utilized  by  the  natives  of  America 
as  a  waterproof  covering  for  clothing,  boats,  and  for 
a  kind  of  bottle.  The  earliest  word  applied  to  rub- 
l^er  is  caucho,  from  which  comes  the  corruption  caout- 
chouc. When  the  Brazilian  speaks  of  borracha,  he 
refers  especially  to  the  product  of  the  hevea,  the  tree 
giving  the  finest  quality.  This  is  a  large  tree,  growing 
slowly  and  living  long.  It  is  found  in  the  valley  of  the 
Amazon  and  the  surrounding  States.  It  sometimes 
reaches  twelve  feet  in  circumference,  and  requires  low- 
lying,  rich  soil,  and  abundant  moisture.     It  is  well 


296  THE  FUTURE  OF  SOUTH  AMERICA 

adapted  to  cultivation,  having  been  planted  in  the 
East  Indian  Islands  with  success. 

Manihot  produces  the  ceara  rubber  of  commerce, 
but  it  grows  in  a  high,  stony,  and  arid  country.  This 
is  also  native  to  Brazil,  but  in  the  region  south  of  the 
Amazon.  The  best  known  rubber  producer,  next  to 
hevea,  is  castilloa,  and  though  found  in  Peru  and  else- 
where south  of  the  equator,  it  is  most  common  in  Cen- 
tral America  and  southern  Mexico.  Other  trees,  shrubs, 
and  vines  yield  rubber,  one  especially  being  the  guayule, 
a  shrub  from  which  is  obtained  a  pure  product  that 
can  be  used  for  every  purpose.  The  rubber  trees  which 
I  saw  were  not  over  a  foot  in  diameter  and  very  scat- 
tered. In  fact,  all  the  forest  trees  are  much  smaller 
than  I  expected. 

Technically  it  is  not  correct  to  call  this  juice  sap,  as 
it  plays  a  different  part  than  sap.  It  is  rather  the 
cream  from  the  juice,  the  milk  or  latex  of  all  these  trees. 
It  has  an  exact  chemical  formula,  CioHie;  it  is  a  whitish 
solid,  opaque,  and  forms  a  gelatinous  mass  with  ethers 
and  the  coal-tar  oils.  It  will  also  melt  and  burn.  To 
produce  the  rubber  of  commerce  with  which  we  are 
familiar,  it  is  mixed  with  sulphur  in  certain  proportions. 
About  fifty  per  cent,  of  the  world's  supply  of  rubber 
now  comes  from  Brazil;  but  this  percentage  is  con- 
stantly decreasing. 

From  my  studies  in  Brazil,  it  seems  to  me  that  the 
days  of  high  rubber  prices  are  permanently  over.  Not 
only  are  rubber  plantations  being  set  out  all  over  the 
world,  but  many  experiments  are  being  made  to  obtain 
rubber  from  a  kind  of  cane  or  corn  stalk  which  can  be 
planted  every  year.  This  would  be  cut  by  machinery, 
the  juice  being  pressed  out  as  from  sugar-cane  or  corn 


BRAZIL  297 

stalks.  In  my  opinion,  the  day  is  coming  when  these 
experiments  will  be  successful,  and  rubber  should  then 
sell  for  about  ten  cents  a  pound.  I  do  not  recommend 
raising  rubber  as  a  money-making  venture. 

With  its  great  extent  of  territory  and  wonderfully 
uniform  distribution  of  rainfall,  it  is  no  wonder  that 
agriculture  holds  first  place  in  the  industries  of  Brazil, 
though,  as  I  have  said,  probably  not  one  fiftieth  of  the 
area  has  yet  come  under  systematic  cultivation.  Hav- 
ing one  of  the  greatest  tropical  areas  in  the  world,  an 
extensive  sub-tropical  plateau  section,  and  fertile  tem- 
perate regions  in  the  southern  States,  Brazil  has  natu- 
rally depended  upon  the  products  of  field  and  forest 
for  money  making.  Even  one  hundred  years  ago,  the 
sugar  of  the  north  and  the  cattle  of  the  south  were 
known  abroad,  and  Brazil  has  from  earhest  times  been 
self-supporting,  as  far  as  the  necessities  of  life  are  con- 
cerned. At  present,  coffee  and  rubber  are  the  great 
export  staples  of  Brazil,  while  other  products  entering 
the  market  are  rice,  cotton,  sugar,  tobacco,  Paraguay 
tea,  mandioca,  and  cacao. 

A  natural  coffee  plant  is  a  shrub  from  fourteen  to 
eighteen  feet  high,  having  no  branches  on  the  lower 
part  of  its  long,  slender  trunk.  A  great  coffee  planta- 
tion in  full  flower  is  a  very  beautiful  sight.  The  trees 
cover  the  hills  and  plateaus  and  the  perfume  is  strong 
though  dehcate.  The  trees  blossom  most  profusely  in 
October,  but  continue  to  flower  more  or  less  for  several 
months.  The  crop  is  harvested  in  May  or  June,  each 
tree  yielding  four  pounds  or  more  of  coffee.  Coffee- 
picking  time  occupi(!S  every  available  person  on  the 
plantation,  every  other  work  being  dropped  until  the 
harvest  is  finished.     Brazil  produces  three  fourths  of 


298  THE  FUTURE  OF  SOUTH  AMERICA 

the  world's  supply  of  coffee,  and  the  State  of  Sao  Paulo 
now  furnishes  one  half  of  Brazil's  production. 

The  story  goes  that  a  Portuguese  settler  first  planted 
a  bush  in  Rio  de  Janeiro  in  1760,  and  from  that  have 
come  the  millions  of  trees  and  such  a  wealth  of  pro- 
duction that  in  1903  the  government  restricted  the 
planting  of  new  trees,  because  the  supply  was  greater 
than  the  demand.  The  coffee  crop  now  averages  about 
eighteen  million  bags  of  sixty  kilos  each  per  year,  or 
about  two  billion  five  hundred  million  pounds.  Hence 
the  price  of  coffee  is  now  the  best  barometer  of  Brazil's 
prosperity. 

Mandioca  is  another  of  the  great  products  of  Brazil 
which  offers  opportunities  for  money  making.  It  is  the 
food  of  the  natives,  as  corn  was  the  food  of  the  North 
American  Indians.  The  early  discoverers  were  told 
that  supernatural  instruction  had  been  given  the 
simple  natives  in  the  preparation  of  this  root.  In  its 
raw  state,  mandioca  is  frequently  a  deadly  poison,  and 
always  an  irritant,  but  when  properly  prepared,  it  be- 
comes a  highly  nourishing  food.  It  is  greatly  esteemed 
by  Brazilians  of  all  classes,  and  is  the  staple  for  bread  all 
through  the  country.  The  plant  is  universally  grown, 
and  the  best  planting  season  is  from  June  to  September. 
It  takes  from  eight  months  to  two  years  for  the  root  to 
reach  its  growth,  depending  on  soil  and  climate.  It 
must  be  treated  with  great  care  in  order  to  change  the 
poisonous  starchy  contents  into  healthy,  edible  starch, 
and  the  natives  seem  to  be  very  skillful  in  accom- 
plishing this  result.  The  work  must  all  be  done  the 
same  day,  including  gathering  the  tubers,  washing  and 
grating  them,  pressing  out  the  water,  and  roasting 
what  is  grated,  to  make  the  mandioca  flour.    Some  en- 


BRAZIL  299 

terprising  "breakfast  food"  man  will  some  day  exploit 
mandioca  in  our  country  and  make  a  fortune  therefrom. 

The  cotton  and  sugar  plantations  received  a  setback 
when  slavery  was  aboHshed  in  1888;  but  they  are  now 
prospering  again.  It  is  by  black  labor  that  these 
products  are  raised  to-day,  but  such  labor  is  not  very 
dependable.  The  blacks  are  contented  with  working 
just  enough  to  provide  themselves  with  the  actual  neces- 
saries of  life.  In  tliis  industry  it  is  certainly  true,  as 
is  said  of  South  America  as  a  wdiole,  ''there  is  no  prob- 
lem of  the  unemplo3^ed."  In  considering  especially  the 
world's  supply  of  cotton,  and  the  interest  which  is  now 
being  directed  by  the  BrazilianGovernment  to  sections 
where  cotton  is  grown  on  trees,  it  may  be  news  to  some 
readers  to  know  that  Brazil  has  two  species  of  cotton- 
bearing  trees  that  merit  attention.  The  first,  known 
as  the  barragunda,  has  a  barrel-shaped  trunk  and 
reaches  from  twenty-five  to  thirty-five  feet  in  height; 
the  second,  or  imbirussa,  which  produces  a  kind  of 
brownish  cotton,  is  regarded  as  a  finer  grade.  Both 
species  are  indigenous  to  the  country  and  grow  wild. 
I  think  that  cotton  growing  may  present  an  oppor- 
tunity for  making  money  in  Brazil. 

Minas  Geraes,  the  center  of  the  mining  industry,  and 
larger  tlian  the  republic  of  France,  is  the  most  densely 
populated  of  all  these  Brazilian  states.  Its  capi- 
tal, Bello  Horizonte,  is  unique  in  that  it  was  built  to 
order  only  a  few  years  ago  on  a  previously  unoccupied 
site.  Its  government  buildings  alone  cost  thirty  mil- 
lion dollars.  Of  the  State  of  Minas  Geraes,  Marie  Rob- 
inson Wright  (the  accomplished  traveler  and  brilliant 
writer  who  has  lately  died)  said:  "Of  all  the  fabulous 
tales  related  of  bonanza  places,  the  palm  for  extrava- 


300  THE  FUTURE  OF  SOUTH  AMERICA 

gance  belongs  to  the  history  of  the  early  mining  days 
in  Brazil,  when  horses  were  shod  with  gold,  when  law- 
yers supported  their  pleadings  before  judges  with  gifts 
of  what  appeared  at  first  sight  to  be  the  choicest 
oranges  and  bananas,  but  proved  to  be  solid  gold  imi- 
tations, when  guests  were  entertained  at  dinner  by  the 
discovery  of  gold  pebbles  instead  of  grains  of  corn, 
when  nuggets  were  the  most  convenient  means  of  ex- 
change in  the  money  market."  An  English  authority 
has  estimated  that  the  total  output  up  to  recent  years 
was  two  hundred  million  pounds  sterling.  With  the 
gradual  exhaustion  of  the  surface  deposits  and  the  im- 
possibility of  continuing  by  primitive  methods,  how- 
ever, mining  has  been  more  and  more  neglected.  At 
present,  modern  methods  and  machinery  are  once  more 
bringing  the  industry  into  prominence,  and  a  consider- 
able amount  of  gold  is  again  being  taken  out  by  the 
few  companies  that  have  already  installed  up-to-date 
plants.  This  State  also  possesses  immense  deposits  of 
iron  ore  which  are  hkely  soon  to  be  worked. 

The  official  reports  enumerate  over  twenty  minerals 
and  stones  found  in  Brazil,  which  offer  opportunities 
for  money  making.  The  diamond  mines  of  the  region 
of  Diamantina  were  discovered  in  1729.  There  are  some 
romantic  stories  told  of  these  early  discoveries.  The 
Regent  diamond,  weighing  nearly  an  ounce,  found  by 
three  convicts,  is  said  to  have  secured  their  pardon. 
The  Estrella  do  Sul,  now  belonging  to  the  Rajah  of 
Baroda,  India,  picked  up  by  a  slave  who  gave  it  for  his 
freedom,  was  the  highest  ransom  ever  paid  for  liberty. 
When  uncut  it  weighed  two  hundred  and  fifty  carats, 
and  about  half  that  when  cut,  its  value  being  fifteen 
million  dollars.     For    many  years,   until  the    South 


BRAZIL  301 

African  mines  came  into  competition,  this  region  was 
the  chief  source  of  the  world's  supply.  Black  diamonds 
are  found,  also  amethysts,  tourmahnes,  topazes,  and 
stones  of  less  value. 

The  stock-raising  industry  of  the  country  has  long 
been  firmly  established,  and  is  steadily  advancing.  In 
the  State  of  Rio  Grande  do  Sul,  cattle  have  been  grown 
and  killed  for  their  meat  and  hides,  and  considerable 
amounts  exported.  In  the  States  of  Minas  Geraes,  Sao 
Paulo,  and  Rio  de  Janeiro,  this  industry  is  progressing 
rapidly,  and  to  it  is  added  dairying,  which  until  a  few 
years  ago  was  considered  unimportant.  As  better 
faciUties  are  provided  for  such  work  and  for  shipping, 
the  south  of  Brazil  will  surely  take  a  still  larger  share 
in  foreign  trade.  Many  claim  that  cattle  raising  offers 
to-day  the  best  opportunity  for  money  making  of  any 
industry  in  Brazil.  In  the  city  of  Sao  Paulo,  a  packing 
plant  of  latest  efl&ciency  has  been  opened,  and  more  are 
contemplated. 

A  country  so  largely  agricultural  in  its  interests  would 
not  be  expected  to  have  great  manufactures,  but  Brazil 
has  made  a  beginning  in  some  plants,  especially  for 
making  her  own  products  into  goods.  The  first  textile 
mill  was  started  in  Brazil  only  twenty  years  ago,  but 
since  then,  on  account  of  better  machinery  and  increased 
faciUty  of  transportation,  the  industry  has  grown  re- 
markably, perhaps  making  greater  progress  than  any 
other.  Five  of  the  larger  cotton  mills  in  the  federal 
district  of  Rio  de  Janeiro  employ  ten  thousand  opera- 
tives, and  have  an  output  of  al)Out  eighty  million  yards 
a  year.  Four  mills  in  Pctropolis  manufacture  an  aver- 
age of  twenty  million  yards,  while  the  mills  in  Sao  Paulo 
produce  about  one  hundred  milhon  yards.     As  the 


302  THE   FUTURE   OF   SOUTH  AMERICA 

stock  in  these  companies  yields  a  good  profit  on  the 
investment,  protected  by  Brazil's  high  tariffs,  there  is 
yet  possibility  for  future  extension  of  the  industry. 

There  are  several  large  shoe  factories  in  Sao  Paulo 
and  Rio  de  Janeiro,  and  lately  the  tanneries  of  Rio 
Grande  do  Sul  have  been  turning  out  leather  in  good 
qualities  and  many  grades,  comparing  favorably  with 
that  imported  from  abroad.  In  the  district  of  Rio  de 
Janeiro,  the  Tramway,  Light,  and  Power  Company  of 
that  city  has  been  obliged  to  enlarge  its  plant  to  over 
eighty  thousand  horse  power  to  meet  the  increasing 
demand  for  electric  power  on  account  of  the  establish- 
ment of  new  factories  and  the  enlargement  of  old  ones. 

In  addition  to  the  flour  mills,  shoe,  shirt,  collar,  stock- 
ing factories,  etc.,  already  established,  may  be  men- 
tioned among  new  industries  a  plant  for  the  manu- 
facture of  hydrogen  gas  to  be  used  in  welding  and  cut- 
ting iron;  a  railway  car  assembhng  works;  a  fiber 
plant;    steam  laundry,  etc. 

Sao  Paulo  ranks  near  to  Rio  de  Janeiro  in  industrial 
importance.  Besides  the  manufacture  of  sugar,  alcohol, 
jute,  beer,  chemicals,  hats,  paper,  matches,  leather, 
shoes,  and  furniture,  there  have  lately  been  started  lace 
and  silk  factories  in  the  State.  The  old  power  plant  of 
the  Sao  Paulo  Tramway,  Light,  and  Power  Company 
has  a  capacity  of  thirty-two  thousand  horse  power,  and 
a  new  plant  of  sixty-two  thousand  five  hundred  horse 
power  has  lately  been  built  by  the  company  at  Sorocabo, 
Sao  Paulo,  for  the  supply  of  additional  power  to  Sao 
Paulo  city  and  other  cities  and  towns. 

In  the  State  of  Parana,  the  lumber  industry,  while 
still  in  its  infancy,  is  making  great  progress.  Its  an- 
nual production  will  soon  be  increased  by  the  growing 


BRAZIL  303 

output  of  the  two  large  sawmills  recently  built,  which 
are  equipped  with  the  most  modern  American  machin- 
er}'.  They  are  cutting  Parana  pine  and  sending  the 
product  to  other  parts  of  the  country  and  to  Argentina. 
Cedar  for  cigar  boxes  is  also  being  shipped  from  this 
State  to  Rio  de  Janeiro  and  Bahia. 

Doubtless  the  manufacture  of  cotton  goods,  shoes, 
and  a  few  other  things  is  natural  and  has  come  to  stay. 
I  cannot  help  feeling,  however,  that  Brazil  is  sure  to 
witness  a  tariff  revision  from  which  many  manufacturers 
of  miscellaneous  goods  will  suffer.  Hence  I  am  not  so 
enthusiastic  over  Brazil's  manufacturing  possibilities  as 
over  her  agricultural,  pastoral,  and  mining  opportunities. 

The  many  harbors  on  the  coast  of  Brazil  afford  great 
opportunities  for  trade.  Some  of  these  are  rendered 
dangerous  by  shifting  sand  bars  and  coral  reefs,  but 
improvements  are  constantly  being  made.  A  peculiar 
feature  on  the  southern  coast  is  the  chain  of  lakes  and 
lagoons  lying  parallel  to  the  coast  line.  In  some  of 
these  the  water  is  fresh,  in  others  brackish;  some  are 
entirely  closed,  others  connected  with  each  other  by 
small  creeks;  a  few  have  narrow  outlets  to  the  ocean, 
perhaps  disappearing  in  the  dry  season.  Enlarged  and 
deepened,  these  lakes  might  form  ideally  safe  harbors 
for  vessels  engaged  in  the  trade  of  the  world.  In  the 
early  part  of  1913,  Brazil  felt  a  severe  financial,  indus- 
trial, and  commercial  setback,  and  the  economic 
prosperity  enjoyed  during  four  years  previous  was 
temporarily  checked.  The  drop  in  coffee  and  rubber, 
the  two  mainstays  of  the  country's  source  of  wealth, 
occurred  at  the  same  time  as  her  reduced  imports  and 
customs  revenue.  Conditions,  however,  have  since 
improved. 


304  THE  FUTURE  OF  SOUTH  AMERICA 

Not  only  does  a  decline  in  the  price  of  coffee  and 
rubber  give  the  Brazilians  less  money,  but  they  then 
spend  less  on  imports,  which  greatly  reduces  the  income 
of  the  federal  government.  As  I  have  suggested,  the 
government  is  considering  the  revision  of  the  present 
high  protective  tariff  which  imposes  rates  as  high  as 
three  hundred  per  cent.,  excluding  many  articles  not 
manufactured  in  Brazil,  and  a  readjustment  of  certain 
schedules  is  advocated,  in  order  to  make  the  tariff  sci- 
entific, and  to  reduce  duties  generally  in  order  to  col- 
lect more  revenue.  This  proceeding  would  at  the  same 
time  benefit  the  people  by  reducing  the  enormous  cost 
of  Hving  in  Brazil. 

A  Portuguese  navigator  discovered  Brazil,  landing 
in  1500  not  far  from  the  present  site  of  Bahia.  By  1549 
the  country  had  become  known  as  Brazil,  from  the  red 
dyewood  which  its  forests  produced,  and  which  had 
before  this  time  been  brought  from  the  East  and  known 
as  "Brazil  wood."  The  Portuguese  Crown  claimed  the 
country  and  divided  it  among  nobles,  who  received  a 
number  of  Indian  slaves  in  addition  to  grants  of  land, 
and  who  were  to  settle  and  colonize.  The  first  Jesuits 
who  came  obtained  complete  control  over  the  Indians, 
and  in  order  to  prevent  these  aborigines  from  being 
sold  into  slavery,  recommended  and  encouraged  the 
importation  of  slaves  from  Africa.  Up  to  1640,  French, 
Dutch,  and  British  attempted  to  gain  a  foothold  in 
Brazil.  The  Dutch  in  1631  took  possession  of  Pernam- 
buco,  and  extended  their  power  over  a  large  territory 
in  that  region;  but  in  1648  they  were  finally  forced  to 
abandon  the  country. 

Rio  de  Janeiro  was  made  the  capital,  when,  in  1640, 
Brazil  became  a  viceroyalty.    As  a  result  of  Napoleon's 


M  -3 


H   2 
0| 


BRAZIL  305 

invasions  of  Portugal  and  Spain,  early  in  the  nineteenth 
century,  the  Portuguese  King  John  came  to  Brazil. 
He  brought  his  family  and  court,  and  opened  the  ports 
of  the  country  to  the  commerce  of  the  world.  In  1908 
the  centennial  of  this  beginning  of  commerce  was  cele- 
brated in  Rio  de  Janeiro  by  an  exhibition  of  Brazilian 
products.  In  the  fifteen  years  of  King  John's  stay,  he 
estabhshed  schools  and  promoted  the  interests  of  the 
colony  in  many  ways.  On  his  return  to  Portugal,  in 
1821,  he  left  liis  eldest  son,  Dom  Pedro,  as  regent.  This 
son  being  in  sympathy  with  the  movement  for  inde- 
pendence from  Portugal,  the  following  j^ear  proclaimed 
Brazil  independent,  and  was  himself  crowned  as  em- 
peror. Under  his  rule  the  country  prospered,  and  nine 
years  after  he  abdicated  the  throne  in  favor  of  his 
infant  son.  A  regency  governed  the  country  until  this 
young  son  attained  liis  majority,  when  he  was  crowned 
as  Dom  Pedro  II.  In  1889  the  people  of  Brazil  resolved 
to  change  their  government  from  a  monarchy  to  a  re- 
pubUc,  and  this  was  accomphshed  peacefully  and  the 
republic  proclaimed  November  15,  1889.  In  1893, 
there  was  a  revolution  which  was  checked  by  the  United 
States,  the  blockade  of  the  harbors  being  broken  by  our 
navy. 

A  constitution  was  adopted  in  1891,  making  the  re- 
pubhc  a  federal  union  of  States.  The  government,  mod- 
eled after  ours,  is  divided  into  the  same  three  branches. 
The  legislative  department  consists  of  the  National  Con- 
gress, composed  of  the  Senate  and  Chamber  of  Deputies. 
The  Senate  numbers  sixty-three,  three  for  each  State 
and  three  for  the  federal  district,  elected  by  direct  vote 
for  nine  years,  but  renewed  by  thirds  every  third  year. 
The  members  of  the  Chamber  of  Deputies  are  elected 


306  THE  FUTURE  OF  SOUTH  AMERICA 

also  by  popular  vote,  for  a  term  of  three  years,  and  in 
the  proportion  of  one  to  every  seventy  thousand  in- 
habitants. Each  State,  however,  must  have  no  fewer 
than  four  deputies.  Congress  meets  regularly  every 
May  for  four  months,  but  may  be  called  in  extra  ses- 
sion or  prorogued  by  the  President.  All  male  citizens 
over  twenty-one  years  of  age  are  entitled  to  vote. 

In  discussing  the  various  South  American  govern- 
ments, I  have  suggested  that  the  requirements  for  vot- 
ing have  no  relation  to  the  number  of  people  who  actu- 
ally cast  a  ballot.  The  attitude  of  the  Brazilians  on 
this  matter  is  well  illustrated  by  the  following  state- 
ment of  one  of  my  acquaintances  in  Rio  de  Janeiro: 

"You  ask  why  we  do  not  bother  to  vote?  Let  me 
answer  by  explaining  that  politics  is  a  profession  down 
here  which  we  business  men  let  alone.  Were  we  in 
politics  and  wanted  an  office,  we  would  vote  early  and 
often;  but  why  vote  unless  one  wants  an  office?  You 
would  not  expect  to  butt  in  on  a  consultation  of  doctors? 
As  long  as  things  are  satisfactory  to  us  —  why  vote? 
One  only  makes  enemies  by  voting. 

"You  people  in  the  United  States  think  that  any  one 
can  be  a  politician.  You  all  think  that  you  are  experts 
on  every  subject.  Your  voters  are  now  asking  for  the 
referendum  and  recall.  How  stupid!  Of  course  our 
countries  are  not  true  republics,  and  we  have  much  to 
learn  about  good  government,  but  we  are  not  so  stupid 
as  are  your  people.  We  know  enough  not  to  jump  from 
the  frying-pan  into  the  fire.  We  believe  that  every  one 
should  have  a  right  to  vote,  but  that  none  should  ex- 
ercise it  excepting  in  emergencies." 

The  executive  power  is  vested  in  a  President,  with  a 
cabinet  of  seven  ministers  appointed  by  him,  and  re- 


BRAZIL  307 

sponsible  to  him  onh'.  The  President  and  Vice- 
president  are  elected  by  direct  vote  for  a  term  of  four 
years,  and  may  not  be  reelected  for  the  term  immedi- 
ateh'  following  their  own. 

Directly  after  the  country  became  independent  from 
Europe,  the  government  issued  a  decree  allowing  any 
one  to  establish  private  schools.  By  the  present  con- 
stitution, Congress  has  power  to  develop  literature, 
arts,  and  sciences,  but  instruction  must  be  secular  if 
carried  on  in  public  institutions.  The  public-school 
sj'stem  is  receiving  great  attention  in  all  States,  and 
in  some  of  them  primary  education  is  compulsory. 
To  aid  industrial  education,  the  government  will  help 
a  State  government,  city,  or  private  school  which 
reaches  a  certain  standard. 

Though  there  are  no  universities,  as  we  understand 
the  word,  yet  there  are  excellent  art  and  technical 
schools  maintained  by  the  government,  and  several  of 
the  larger  cities  have  very  good  faculties  for  law,  medi- 
cine, and  engineering.  Rio  de  Janeiro  and  Bahia  have 
celebrated  medical  schools;  Pernambuco,  Bahia,  and 
Sao  Paulo  fine  law  schools;  and  Ouro  Preto  boasts  a 
classical  mining  school.  The  aggregate  of  educational 
institutions  is  more  than  thirteen  thousand,  with  an 
attendance  of  about  seven  hundred  and  fifty  thousand, 
this  not  including  the  various  agricultural  colleges. 

January  1,  1914,  the  total  extent  of  railways  in 
Brazil  was  15,272  miles,  as  follows: 

Miles 

Federal  lines 2,188 

Private  lines 5,727 

I^ia.s(MJ  lines 3,4.'j4 

State  lines 3,903 

Total 15,272 


308  THE  FUTURE  OF  SOUTH  AMERICA 

Originally,  railways  in  Brazil  were  established  for 
the  purpose  of  communication  between  the  interior 
contributing  territory  and  the  coast  distributing  points. 
Pernambuco  is  the  focus  of  one  system,  Bahia  of  an- 
other, Rio  de  Janeiro  of  a  third,  Sao  Paulo  and  Santos 
of  a  fourth,  serving  the  coffee  region,  and  Rio  Grande  do 
Sul,  of  a  fifth  system.  Realizing  the  importance  of 
connecting  these  systems  by  interior  railways,  both 
for  purposes  of  communication  and  to  encourage  in- 
ternal settlement  and  trade,  the  government  has  built 
certain  connecting  roads.  To-day  it  is  possible  to 
travel  by  rail  between  Rio  de  Janeiro  and  Montevideo, 
a  distance  of  1,967  miles.  All  the  larger  cities  have 
street  railways,  many  of  which  are  electric  lines.  Enor- 
mous power  for  electrical  purposes  exists  in  the  many 
streams  of  the  country,  and  it  is  proposed  to  electrify 
certain  parts  of  the  railway  lines  now  in  operation. 

In  connection  with  the  railway  problem,  I  want  to 
introduce  the  following  remarks  of  a  man  in  Rio  de 
Janeiro,  which  illustrate  a  financial  mistake  that  we 
have  made  in  South  America.    He  said : 

"You  North  Americans  have  been  foolish  in  repre- 
senting yourselves  to  have  more  money  than  you  really 
have.  In  fact,  most  of  your  financial  operations  in 
South  America  have  been  stupid.  You  are  too  anxious 
for  quick  profits.  You  are  more  interested  in  selling 
out  than  in  standing  by  and  working  your  properties. 
Even  the  valuable  traction,  light,  and  power  properties 
which  you  have  here  may  some  day  suffer  from  the 
huge  capitalization  which  you  have  given  them. 

"  Do  you  know  that  even  the  natives  refer  to  the  street 
cars  as  'bonds'  instead  of  'trains'?  Ask  the  native 
when  the  next  train  or  street  car  is  due  and  he  may  not 


BRAZIL   .  309 

understand  you,  but  ask  him  when  the  next  bond  is 
due,  and  he  will  answer  at  once.  This  is  owing,  I  sup- 
pose, to  the  fact  that  they  have  heard  the  North  Ameri- 
cans down  here  talk  more  about  the  securities  than 
about  the  track  or  cars.  I  strongly  advise  you  to  cease 
talking  so  much  about  money,  business,  and  the  like." 

The  mam^  navigable  rivers  are  the  excuse  for  not 
having  more  railroads  in  Brazil.  Roads  from  one  city 
to  another  vary  in  excellence,  those  through  the  forest 
being  merely  trails.  Between  some  places  there  are 
regular  Imcs  of  automobile  service.  Considering  the 
size  of  the  country,  however,  only  the  faintest  begin- 
ning has  been  made  toward  railway  and  highway 
building.  I  seldom  advise  investing  money  in  any  new 
railways;  but  as  railways  are  gradually  reorganized, 
they  usually  ofifer  great  opportunities  for  money  mak- 
ing. I  am  especially  enthusiastic  over  the  railway 
possibilities  of  southern  Brazil. 

I  was  greatly  impressed  by  southern  Brazil.  This  I 
approached  from  the  seaport  of  Santos,  nearly  a  thou- 
sand miles  north  of  Buenos  Aires.  Santos  is  the  great- 
est coffee  port  of  the  continent.  Formerly  it  had  the 
reputation  of  being  a  nest  of  yellow  fever;  but  the  sani- 
tation of  the  city  has  now  been  accomplished  by  means 
of  a  perfect  sj^stem  of  drainage  and  a  good  water 
supply.  The  old  part  has  narrow  streets,  hardly  more 
than  alleys,  but  away  from  the  business  section  I  found 
the  wide  streets  and  fine  houses  that  I  had  learned  to 
expect  in  these  South  American  cities.  Good  pave- 
ments, electric  cars  and  lights,  telegraph  and  telephone 
service  make  it  a  well-equipped,  modern  city.  The 
only  thing  I  do  not  like  about  Santos  is  the  heat. 

From  Santos  I  went  ninety  miles  inland,  up  about 


310  THE  FUTURE  OF  SOUTH  AMERICA 

twenty-five  hundred  feet  to  the  city  of  Sao  Paulo  on 
the  high  lands  of  southern  Brazil.  This  is  the  great 
money-making  center  of  Brazil  to-day.  It  is  the  capi- 
tal of  the  state  of  the  same  name,  and  is  a  fine  progres- 
sive city.  Here  there  are  practically  no  black  people, 
but  there  are  many  Italians  from  northern  Italy.  As 
in  other  up-to-date  South  American  cities,  great  sums 
of  money  have  been  spent  here  on  sanitation,  until  now 
it  is  one  of  the  most  healthful  cities  in  the  world  as  well 
as  one  of  the  handsomest.  Its  position  and  altitude 
would  seem  to  make  it  unnecessary  for  it  to  be  any- 
thing but  healthful.  It  stands  upon  several  hills,  and 
has  an  alert  air  of  prosperity  and  content.  Its  eleva- 
tion gives  it  a  delightful  climate,  rivaling  that  of  Los 
Angeles  or  San  Diego. 

Sao  Paulo  is  said  to  be  in  advance  of  all  other  cities 
of  the  continent  in  its  educational  advantages.  Though 
Roman  Catholicism  is  the  religion  of  the  State,  there 
is  an  undenominational  college  called  Mackenzie  Col- 
lege, founded  by  a  New  York  man  of  that  name  in 
1889,  who  gave  forty-two  thousand  dollars  toward  the 
erection  of  the  building.  It  is  co-educational,  and  is 
affiliated  with  the  University  of  the  State  of  New  York. 
It  is  well  patronized,  having  graded  and  normal  depart- 
ments, and  a  self-supporting  manual  training  school. 
There  are  also  high-grade  institutions  of  a  sanitary 
character  —  bacteriological,  Pasteur,  Serotherapic  — 
and  fine  large  hospitals  for  general  and  special  diseases. 
Of  course,  Sao  Paulo  is  up-to-date  in  all  different  lines. 
Still  there  are  many  money-making  opportunities  left 
for  the  man  with  capital.  For  instance,  twelve  per 
cent,  interest  can  be  obtained  there  from  good  first 
mortgage  loans! 


BIL\ZIL  311 

Poets,  artists,  travelers  alike  rave  over  Rio  de  Janeiro 
and  its  harbor,  comparing  it  to  almost  every  known 
beauty  spot  in  the  world.  Hence  I  was  prepared  for 
Rio.  Trul}' it  is  beautiful;  but  it  is  too  hot  for  me.  It 
is  the  Washington  of  Brazil,  and  will  always  be  an 
important  city;  it  is  now  the  largest  Portuguese  city  in 
the  world  —  but  I  would  rather  invest  my  money  in 
Sao  Paulo.  The  name  "River  of  January"  implies 
that  the  discoverer  thought  he  had  found  the  mouth 
of  a  river,  but  it  is  a  ba}"  and  not  a  river.  The  wonder- 
ful harbor  is  so  large  that  the  pictures  you  see  of  it  are 
always  labeled  "part  of  the  harbor,"  etc.  Though  it 
is  nearly  a  hundred  miles  in  circumference,  the  large 
inner  part  of  it  is  so  cut  off  by  points  and  islands  that 
its  size  is  not  realized  until  one  sails  around  it. 

President  Rodriguez  Alves  was  the  man  who  put 
into  execution  the  plan  for  the  regeneration  of  Rio  de 
Janeiro  from  a  dirty  city  of  narrow  streets,  often  a 
hotbed  of  yellow  fever,  which  it  was  as  recently  as 
1903,  to  the  city  we  see  to-day.  The  plan,  approved 
in  the  fall  of  1903,  included  "the  construction  of  a 
great  quaj^  furnished  with  storage  warehouses,  rail- 
ways, and  electric  lights,  wdth  a  parallel  avenue  one 
hundred  and  twenty-five  feet  wide  and  two  miles  long; 
the  improving  of  a  cross  canal  to  the  sea  by  making  it 
a  solidly  walled  stream,  with  an  avenue  on  each  side 
shaded  with  palms;  the  lifting  of  the  railroad  from 
street  level  to  a  viaduct  sixteen  feet  above;  increase  of 
the  water  supply,  renovation  of  the  sewerage  system 
with  all  modern  improvements;  the  removal  of  several 
hills;  the  filling  in  of  large  sections,  and  the  widening  of 
a  number  of  streets." 

A  new  avenue  was  also  formed  in  the  heart  of  the 


312  THE   FUTURE   OF   SOUTH   AMERICA 

city,  a  mile  and  a  quarter  long  and  one  hundred  and 
twenty  feet  wide.  In  doing  this  last-named  piece  of 
work,  workmen  toiled  night  and  day,  three  thousand 
of  them,  in  three  months  demolishing  six  hundred 
buildings,  thus  opening  a  space  two  hundred  and  thirty 
feet  wide,  sixty-five  feet  each  side  for  the  new  build- 
ings, one  hundred  and  twenty  for  the  roadway,  and 
twenty  for  each  sidewalk.  "  Along  the  center  of  the 
avenue  a  row  of  Pao  Brazil  palms  was  planted  in  beds 
sixteen  feet  long,  and  fifty-five  posts  bear  each  three 
electric  lights."  These  details  are  given  simply  to 
show  what  a  stupendous  undertaking  was  accomplished 
in  three  months;  and  all  the  while  other  work  was  going 
on  in  various  parts  of  the  city.  It  would  seem  as  if 
the  favorite  "manana"  of  the  Spanish  had  no  synonym 
in  the  language  of  Brazil,  when  it  comes  to  rebuilding 
cities.  All  this  improvement  work  was  begun  in  1904 
and  practically  finished  in  1907. 

This  Avenida  do  Rio  Branco,  as  it  is  called,  is  claimed 
by  Brazihans  to  be  the  most  beautiful  street  in  the 
world.  It  contrasts  very  interestingly  with  the  fash- 
ionable shopping  street,  formerly  named  "Cuvidor," 
now  "Moreira  Cezar,"  which  is  hardly  twenty  feet 
wide,  and  so  crowded  that  carriages  and  carts  are  not 
allowed,  pedestrians  using  the  whole  street.  In  this 
connection,  I  cannot  help  suggesting  what  a  great  op- 
portunity awaits  many  cities  in  the  United  States 
which  will  operate  such  extensive  building  campaigns. 
Any  city  could  do  this,  and  the  expense  would  soon  be 
made  up  in  increased  growth  and  wealth. 

It  takes  a  steamer  about  two  days  to  reach  Bahia 
from  Rio  de  Janeiro.  This  is  the  "  up-and-down-stairs  " 
city  of  Brazil  —  the   upper   part,  as  you  would  ex- 


BIL\ZIL  313 

pect,  the  residential,  and  the  lower  portion,  the  business 
section.  Elevators  convey  people  from  one  to  the  other 
level.  Many  of  the  houses  have  stood  unchanged  since 
the  eighteenth  century,  so  that  the  place  has  a  some- 
what quaint  appearance.  This  is  the  great  cocoa  port 
of  Brazil,  furnishing  about  one  fifth  of  the  world's 
supply,  and  the  State  also  produces  almost  everj'thing 
else,  from  nuts  to  real  diamonds.  Even  the  sand  is 
exported,  some  at  least  being  worth  one  hundred  dol- 
lars a  ton,  the  kind  called  monazite,  rich  in  thorium 
silicate,  used  for  electric  Hghts. 

The  population  is  about  one  hundred  and  fifty  thou- 
sand, and  most  of  the  people  are  black,  very  black. 
These  colored  people,  combined  with  the  heat,  made 
me  long  again  for  Sao  Paulo  and  southern  Brazil. 
Nevertheless,  I  found  Bahia  very  much  better  than  it 
is  described  by  most  travelers.  Huge  sums  have  been 
spent  upon  docks.  The  upper  city  streets  are  being 
widened;  a  beautiful  drive  is  being  made  along  the 
ocean  front,  and  many  other  improvements  are  being 
instituted.  Although  I  should  not  care  to  live  in 
Bahia,  yet  I  believe  it  will  some  day  be  a  great  city. 
Certainly  it  should  not  be  passed  by  salesmen  and 
others  looking  for  South  American  trade. 

It  takes  about  another  day  to  go  from  Bahia  to 
Pernambuco,  a  city  of  about  one  hundred  and  fifty 
thousand.  The  latter  city  inspired  a  famous  Brazihan 
poet  to  say:  "Hail,  beautiful  land!  O  Pernambuco, 
Venice  transported  to  America,  floating  on  the  seas!" 
The  name  is  more  properly  "Rocifd,"  from  a  substan- 
tial roof  off  shore  forming  a  fine  natural  breakwater,  to 
wliicli  the  Dutch  made  some  artificial  addition,  with  a 
powerful  light  on   the  end.     More  prosaic  travelers 


314  THE   FUTURE   OF   SOUTH  AMERICA 

state  that  it  is  built  on  marshy  ground  reclaimed  from 
the  sea.  It  has  many  lagoons  and  bridges,  and  is  pro- 
vided with  all  the  modern  improvements  as  to  lighting 
and  transportation,  and  its  exports  of  cotton  and  sugar 
exceed  those  of  any  Brazilian  city  except  Rio  de 
Janeiro.  At  the  present  time,  landing  at  Pernambuco 
is  difhcult;  but  when  this  is  remedied,  it  should  grow 
very  rapidly.  It  is  the  only  large  South  American  city 
which  has  not  yet  had  a  real  estate  boom,  and  I  am 
told  that  there  are  great  opportunities  there  for  mak- 
ing money. 

Of  Pernambuco  one  of  the  Brazilians  told  me: 
"When  you  return  to  the  United  States,  tell  your 
friends  to  study  Pernambuco.  A  glance  at  the  map 
shows  that  this  is  the  nearest  port  to  England,  Ger- 
many, France,  or  in  fact  any  other  part  of  Europe. 
Furthermore,  it  is  only  three  or  four  days  from  the 
west  coast  of  Africa.  What,  however,  should  interest 
your  people  most  about  Pernambuco  is  the  fact  that 
it  is  the  first  port  which  steamers  from  North  America 
will  naturally  touch  at  on  their  route  south,  and  the 
last  port  of  all  on  their  route  north. 

"Pernambuco  is  also  the  port  for  a  very  rich  coun- 
try. Even  the  province  of  Pernambuco  is  very  rich  of 
itself.  Up  to  the  present  time,  this  city  has  been 
greatly  handicapped  by  landing  facilities.  A  bar  ex- 
tends outside  upon  which  great  breakers  roll.  Ships 
have  to  load  and  unload  quite  a  distance  from. shore. 
For  instance,  to  unload  passengers,  a  boom  and  a  der- 
rick are  needed.  When  I  was  there  last,  it  was  com- 
paratively calm,  but  it  was  necessary  for  me  to  sit  in  a 
basket  and  be  hoisted  up  in  the  air,  and  then  lowered 
over  the  side  of  the  ship  into  a  small  boat.    Harbor  im- 


BRAZIL  315 

provemcnts  arc  already  under  way,  and  it  will  not  be 
long  before  Pernambuco  will  become  well  known  and 
important." 

Para  stands  for  rubber,  so  that  is  what  one  always 
thinks  of  when  the  place  is  mentioned.  The  old  name 
is  Belem,  but  one  may  take  his  choice,  as  the  full  cor- 
porate name  is  Santa  IVIaria  de  Nazareth  de  Belem  do 
Grao  Para!  Within  a  few  years  it  has  become  a  large 
city  of  two  hundred  thousand  inhabitants,  having,  as 
do  most  of  these  cities,  the  modern  conveniences  and 
utilities,  but  also  possessing  much  interest  on  account 
of  its  wealth  of  relics  associated  with  its  romantic 
history.  It  is  described  as  "charmingly  clean  and 
picturesque."  A  local  proverb  runs,  "Who  comes  to 
Para  is  glad  to  stay;  who  drinks  assai  goes  never  away." 
Assai  is  a  most  refreshing  beverage  made  from  the 
fruit  of  the  assai  pahn. 

Of  course  it  is  hot  and  damp  in  Para,  and  therefore 
I  would  not  want  to  live  there.  On  the  other  hand,  it 
is  surely  destined  to  become  the  New  Orleans  of  Brazil. 
It  is  impossil)le  for  the  human  mind  to  conceive  the 
wealth  and  money-making  opportunities  in  the  great 
Amazon  basin  for  those  willing  to  pay  the  price,  and 
Para  is  likely  to  become  the  great  gateway  through 
which  this  wealth  is  taken.  But  living  in  such  places 
has  other  difficulties  besides  the  climate;  one  is  the  lack 
of  social  life.    A  friend  in  Para  said: 

"In  tliis  city  of  two  hundred  thousand  inhabitants, 
there  are  at  present  only  six  citizens  of  the  United 
States  of  America.  As  a  result,  we  are  lonesome  and 
often  homesick.  On  the  other  hand,  do  you  know  that 
we  always  have  a  sort  of  dread  whenever  we  hear  of 
any  new  'Yankees'  (as  we  all  are  called  down  here) 


316  THE   FUTURE   OF  SOUTH  AMERICA 

coming  to  Para.  They  almost  always  say  something 
stupid  which  takes  us  weeks  to  live  down.  Let  me 
give  you  an  illustration.  A  recently  arrived  Yankee 
said:  'Yes,  this  is  a  fine  country;  all  that  is  needed  is 
for  some  of  us  Americans  to  come  down  and  run  it.' 

"  The  Soiith  Americans  also  resent  our  manners. 
They  accuse  us  of  being  indifferent  and  rude,  and 
the  free  and  easy  airs  of  our  women  folk  are  utterly 
beyond  them." 

In  conclusion,  it  is  my  belief  that  Brazil  is  by  nature 
the  richest  country  in  the  world.  Some  day  it  may 
almost  feed  the  entire  Western  Hemisphere.  Its  cli- 
mate is  better  than  is  generally  supposed,  and  there  is 
no  physical  reason  why  —  with  motors  and  agricultural 
machinery  —  man  cannot  live  in  almost  any  part  of 
Brazil  and  be  comfortable  and  happy.  This  day, 
however,  is  far  distant  in  the  future.  In  short,  Brazil 
has  a  great  future;  but  this  future  is  a  long  distance 
away.  Some  day  Brazil  may  be  the  most  influential 
country  in  the  Western  Hemisphere,  but  it  will  never  be 
so  in  our  time.  So  far  as  we  need  seriously  consider  the 
future  of  Brazil,  we  can  confine  our  efforts  to  South- 
ern Brazil  and  certain  few  other  temperate  sections. 

Through  the  courtesy  of  the  President  of  Brazil, 
Doctor  Wenceslao  Braz,  I  was  able  to  interview 
the  government  of  Brazil,  through  Doctor  Miiller, 
who,  the  Brazilians  claim,  knows  more  about  their 
country  than  any  other  person.  Doctor  Miiller  was 
the  foreign  minister,  an  official  corresponding  to  our 
Secretary  of  State.  He  was  one  of  the  founders  of  the 
republic,  the  first  governor  of  the  State  of  Santa  Cath- 
arina,  and  has  since  been  a  deputy  and  senator,  be- 
sides holding  other  important  positions. 


BRAZIL  317 

In  1913  Doctor  Miillcr  came  to  the  United  States 
to  return  officially  the  visit  which  former  Secretary  of 
State  Root  had  made  to  Brazil  a  few  years  before. 
WTiile  in  the  United  States,  Doctor  Miiller  was  the 
official  guest  of  tliis  nation  as  well  as  of  most  of  the 
principal  cities.  One  of  the  honors  accorded  to  him 
was  the  honorary  degree  of  Doctor  of  Laws,  of  Har- 
vard, wliich  was  conferred  by  President  Lowell  in  the 
following  words: 

"Lauro  Scveriano  Miiller,  Brazilian  Minister  of 
Foreign  Affairs,  maker  of  harbors  and  railroads,  beau- 
tifier  of  a  beautiful  city,  statesman  who  has  waged  war 
against  slavery  and  disease,  a  soldier  who  strives  for 
peace  and  for  that  friendly  spirit  wliich,  pervading  the 
Americas,  will  promote  the  welfare  of  the  western 
world." 

Upon  meeting  our  most  unselfish  Ambassador  Mor- 
gan and  myself  in  behalf  of  the  government,  Doctor 
Miiller  bluntly  said: 

"Well,  I  am  glad  to  greet,  here  in  the  United  States 
of  Brazil,  a  man  from  the  United  States  of  North 
America."  (I  was  much  interested  to  hear  him  refer 
to  the  United  States  of  North  America.  I  suppose  he 
rightly  considers  his  own  country  as  much  a  "U.  S.  A." 
as  our  country.  I  am  afraid  it  handicaps  us  seriously 
in  South  America  to  refer  to  our  country  as  if 
it  were  the  exclusive  United  States  of  America. 
They  want  us  to  use  the  words  "North  America," 
or  else  to  coin  some  new  word  such  as  Usono,  or  Area, 
which  would  refer  exclusively  to  our  country,  as  the 
word  Brazil  refers  only  to  theirs.)     He  then  continued: 

"It  is  usually  necessary  for  me  to  go  to  London  or 
Paris,  in  order  to  meet  persons  from  Philadelphia,  New 


318  THE  FUTURE  OF  SOUTH  AMERICA 

York,  Chicago,  and  your  other  fine  cities.  Very,  very 
few  of  your  people  come  here.  There  are  some  fine 
fellows  here  from  your  country  connected  with  the 
Rio  de  Janeiro  Light  and  Power  Company.  There  are 
a  few  connected  with  some  of  your  big  corporations, 
such  as  the  Standard  Oil,  United  States  Steel,  Inter- 
national Harvester,  National  Cash  Register,  Otis  Ele- 
vator, and  the  like.  The  colony  from  your  country  is, 
however,  very  small.  It  should  be  much  larger.  With 
several  thousands  of  fine  men  here  from  France,  Eng- 
land, and  Germany,  it  seems  wrong  to  us  that  there 
should  be  only  a  handful  from  the  great  United  States 
of  North  America." 

(Readers  must  forgive  me  for  being  inconsistent  in 
the  use  of  the  name  of  our  people.  The  South  Ameri- 
cans refer  to  us  as  North  Americans,  but  the  Cana- 
dians object  to  our  assuming  that  name,  for  they  are 
as  much  North  Americans  as  are  we.  It  is  very 
awkward  all  round.  To  say  "United  States-ians"  is 
very  awkward.  We  certainly  do  need  a  real  and  dis- 
tinctive name.) 

Said  I:  "You  state  that  more  people  from  my  coun- 
try should  come  to  Brazil.  May  I  ask  you  to  tell  me 
what  you  have  to  offer  my  people?  Perhaps  they  have 
a  misconception  about  Brazil.  Our  writers  refer  to 
Argentina  and  Chile  as  the  progressive  and  temperate 
countries  of  South  America;  but  include  Brazil  among 
the  tropical  countries.  I  suppose  this  is  largely  due  to 
the  false  teachings  of  the  geographies  which  the  children 
of  our  country  study.  These  textbooks  devote  practi- 
cally all  their  space  to  northern  Brazil,  and  the  pictures 
show  only  jungle,  tigers,  and  black  men.  It  is  true 
that  up  to  the  present  time  the  principal  exports  of 


BRAZIL  319 

Brazil  have  been  rubber  and  coffee,  and  your  most 
famous  river  is  the  Amazon,  which  traverses  a  most 
tropical  country.  To  judge  Brazil,  however,  by  the 
Amazon  Valley,  is  as  unfair  as  to  judge  my  own  coun- 
try by  the  deserts  of  Arizona  and  New  Mexico.  Have 
3'ou  not  the  largest  area  available  for  the  raising  of 
cotton  and  the  largest  area  of  forest,  including  the  most 
valuable  of  woods?  Have  you  not  fertile  plains  for  the 
raising  of  cattle  which  some  day  will  become  great 
grain  producers?  In  view  of  all  that  appears  in  the 
papers  about  Brazil's  poverty,  I  believe  that  some  facts 
as  to  Brazil's  wealth  should  be  published." 

The  face  of  this  great  statesman  then  lighted  up  and 
he  rephed: 

"Ah,  our  greatest  assets  have  been  our  greatest 
handicaps.  A  great  asset,  for  instance,  is  our  high 
table-land,  three  thousand  feet  above  the  sea,  contain- 
ing deep,  rich  soil,  wonderfully  watered  by  numerous 
rivers,  and  possessing  the  finest  climate  in  the  world. 
But  unfortunately  this  high  table-land  has  greatly  re- 
tarded the  development  of  Brazil.  Until  compara- 
tively few  years  ago,  it  has  been  ver}^  difficult  to  reach. 
The  railroads  have  run  only  along  the  coast,  and  did 
not,  until  recentl}^,  ascend  this  table-land.  Hence  this 
great  plateau  ha,s  been  almost  unknown,  having  been 
shut  out  from  the  world  by  the  mountain  ranges  ex- 
tending along  the  eastern  coast. 

"Another  great  asset  of  Brazil  is  our  rivers.  As  you 
suggested,  we  have  the  greatest  in  the  world.  These 
are  so  large  and  numerous  that  the  transportation  sys- 
tem of  Brazil  has  become  a  river  system.  Each  river 
has  its  own  steamers  which  ply  back  and  forth,  as  do 
the  railroads  across  your  prairies.    Brazil  probably  has 


320  THE   FUTURE   OF   SOUTH  AMERICA 

more  steamers  engaged  in  river  traffic  than  any  other 
country  in  the  world. 

''This  mountain  range  a  few  miles  back  from  the 
coast  and  these  many  navigable  rivers  have  resulted 
in  the  settlements  of  Brazil  being  along  the  coast  and 
on  the  banks  of  these  streams.  Of  course,  such  loca- 
tions are  apt  to  be  low,  hot,  and  perhaps  unhealthy. 
As  these  coast  and  river  ports  have  been  practically  all 
that  your  people  have  seen  of  Brazil,  they  have  ob- 
tained a  very  incorrect  idea  of  it.  As  persons  who  have 
not  been  here  take  their  opinions  from  those  who  have, 
this  causes  all  you  people  to  be  prejudiced  against  my 
native  land,  believing  it  to  be  only  a  hot,  low,  and  un- 
healthy country.  Hence  I  say  that  our  greatest  as- 
sets have  been  our  greatest  handicaps." 

In  this  connection,  let  me  add  that  my  personal  ex- 
perience in  Brazil  convinced  me  that  the  government's 
position  is  correct.  When  we  landed  in  the  harbor  of 
Santos,  the  great  coffee  port,  it  was  so  hot  and  humid 
that  I  wanted  to  leave  at  once.  It  was  very  uncom- 
fortable and  depressing.  I  therefore  took  the  first  train 
to  Sao  Paulo  (about  ninety  miles  inland  and  twenty- 
five  hundred  feet  high),  on  the  eastern  edge  of  the 
plateau  to  which  Doctor  Mliller  referred.  Within 
half  an  hour  after  the  train  left,  it  became  cooler,  and 
when  we  arrived  at  Sao  Paulo,  it  was  just  delightful. 
Although  I  have  traveled  extensively  in  both  the  Ameri- 
cas and  Europe,  I  believe  that  the  cHmate  of  southern 
Brazil  is  the  finest  I  have  ever  seen.  And  yet  there  are 
over  a  thousand  miles  of  this  country,  which  covers  an 
area  equal  to  our  entire  great  central  west,  tributary 
to  Chicago.  The  country  is  rolling,  about  half  being 
wooded  and  the  rest  prairie.     It  is  very  much  of  the 


BR.\ZIL  321 

same  character  as  were  Indiana  and  Illinois  fifty  years 
ago;  but  with  a  finer  chmate  and  more  rivers. 

The  maximum  temperature  of  these  high  lands  of 
southern  Brazil  is  about  80°,  and  the  minimum  about 
30°,  with  an  average  of  nearly  60°.  There  is  a  rainy 
season  beginning  in  October,  which  corresponds  with 
our  April,  and  then  it  rains  nearly  every  day  for  an 
hour  about  4  p.  m.  Once  in  a  while  there  is  a  hard 
rain  lasting  a  day  or  more;  but  most  of  the  time  the 
sun  shines  beautifully.  There  is  almost  always  a  cool 
breeze,  and  blankets  are  needed  every  night  in  the 
year.  Experts  tell  me  that  the  climate  of  southern 
Brazil,  as  well  as  the  soil  and  scenery,  is  actually  su- 
perior to  that  of  California.  Moreover,  the  water 
powers  of  Brazil  are  a  story  by  themselves,  for  the 
country  has  the  greatest  amount  of  undeveloped  water 
power  of  any  country  in  the  world. 

From  a  study  of  the  statistics  of  Brazil,  it  is  evident 
that  to-day  the  country  is  very  dependent  upon  the 
price  of  coffee  and  rubber.  Therefore  I  said  to  Doctor 
Miiller: 

"I  think  that  our  bankers  will  ask,  'Should  not  the 
products  of  Brazil  be  more  diversified?  Not  only  are 
coffee  and  rubber  very  fluctuating  in  price,  but,  to  a 
certain  extent,  they  are  luxuries.  No  country  which 
fives  on  luxuries  has  stable  business  conditions.  Luxu- 
ries present,  according  to  statistics,  the  greatest  profit 
during  times  of  prosperity,  and  suffer  the  severest 
losses  during  periods  of  depression.  What  is  Brazil 
doing  to  remedy  this?  Are  you  spending  money  on 
sfientific  research  in  the  development  of  the  cotton 
and  other  industries?'" 

Again  Doctor  Miiller  warmed  up,  as  he  said: 


322  THE   FUTURE   OF   SOUTH  AMERICA 

"Yes,  we  have  heretofore  perhaps  'had  all  our  eggs 
in  one  basket/  or  at  least  in  two  baskets,  coffee  and 
rubber;  but,  as  you  suggest,  those  days  are  over.  The 
government  of  Brazil  is  now  opening  many  agricultural 
schools,  and  is  making  great  efforts  to  develop  the 
raising  of  cotton,  cacao,  and  cocoanuts  in  the  north,  and 
of  beef,  wool,  and  cereals  in  the  southern  table-lands. 
In  twenty-five  years  Brazil  will  be  the  greatest  ex- 
porter, not  only  of  coffee  and  rubber,  but  also  of 
cotton,  woods,  beef,  and  possibly  cacao,  palm  oil,  and 
other  products. 

"Already  you  will  find  greatly  diversified  agricul- 
ture in  the  southern  States  of  Rio  Grande  do  Sul  and 
Santa  Catharina.  There  you  will  see  vineyards  and 
fig  trees,  rice  and  potatoes  growing  within  short  dis- 
tances of  one  another.  Concerning  Santa  Catharina, 
of  which  I  was  the  first  governor,  you  may  be  interested 
to  know  that  some  time  ago  Emperor  William  of  Ger- 
many sent  experts  to  South  America  to  report  on  the 
most  attractive  and  productive  portion  of  the  entire 
continent.  After  an  exhaustive  study,  the  report  was 
made  that  Blumenau  (in  the  eastern  part  of  my  old 
State)  is  the  center  of  the  finest  known  agricultural 
and  climatic  conditions  of  the  entire  world.  You  may 
also  be  interested  to  know  that  as  a  result  of  this  report, 
German  colonists  went  there  ten  years  ago,  and  pur- 
chased land  for  two  milreis  (about  sixty-five  cents  of 
your  money)  per  acre,  which  land  to-day  they  can  sell 
for  twenty  times  that  figure.  Perhaps  Germany  sets 
your  country  a  good  example  by  such  work.  Would  n't 
it  do  much  to  cement  the  relations  between  the  United 
States  of  Brazil  and  the  United  States  of  the  North  if 
your  country  would  send  such  a  commission  to  study 


BRAZIL  323 

South  America,  and  report  upon  the  relative  prospects 
of  the  different  countries?" 

Let  me  add  that  there  is  much  in  this  suggestion. 
At  the  present  time,  immigrants  are  led,  or  misled,  by 
the  beautiful  booklets  of  the  various  steamship  com- 
panies and  the  pretty  folders  of  the  railroads.  As  these 
Hnes  are  competitive  and  money-making  corporations, 
they  simply  employ  an  advertising  agency  to  prepare 
advertisements  which  will  "get  business."  This  often 
results  in  much  misfortune,  both  to  the  poor  immi- 
grants and  to  the  country  to  which  they  come.  Even 
the  governments  are  often  parties  to  such  misleading 
of  people,  either  independently,  through  booklets  and 
other  advertising  matter  which  they  themselves  issue, 
or  collectively,  through  very  useful  organizations  like 
the  Pan-American  Union,  which  are  not  allowed  to 
unfavorably  compare  the  different  countries.  Reports 
for  immigrants  and  others  should  be  issued  by  an  inter- 
national body  which  has  in  view  the  good  of  the  world 
as  a  whole,  and  is  not  working  for  any  one  country. 

Until  such  a  day  comes,  readers  who  feel  that  they 
cannot  afford  the  services  of  some  private  organiza- 
tion, may  write  our  Department  of  Commerce  at 
Washington  when  desiring  information  about  South 
America. 

I  next  asked  the  Foreign  Minister  relative  to  the 
government's  position  on  the  tariff  question.  All 
South  America  is  cursed  with  high  tariffs,  which  have 
both  greatly  retarded  growth  and  have  kept  business 
in  a  state  of  confusion.  We  in  North  America  know 
how  business  is  upset  by  a  discussion  of  the  tariff 
question,  but  this  applies  here  only  to  imports.  JNIore- 
over,  in  this  country  all  our  States  cgme  under  the 


324  THE  FUTURE  OF  SOUTH  AMERICA 

same  tariff  laws,  and  we  have  only  two  foreign  neigh- 
bors —  Canada  and  Mexico.  In  South  America  there 
are  twelve  countries  all  jumbled  in  together,  all  having 
import  duties,  and  some  having  export  duties  as  well. 
Brazil,  moreover,  not  only  has  both  import  and  export 
duties,  but  each  of  her  twenty-one  States  has  separate 
and  independent  export  duties.  Not  only  may  the 
export  tax  on  the  same  article  be  different  for  each  of 
the  different  States,  but  there  is  an  export  duty  on 
articles  sent  from  one  State  to  another.  For  instance, 
the  export  duty  on  potatoes  is  said  to  be  so  high  that 
the  farmers  of  one  State  cannot  afford  to  ship  them  to 
an  adjoining  State,  but  will  let  the  hogs  eat  them; 
while  the  people  of  the  adjoining  State  will  import  pota- 
toes from  Europe.  This  not  only  handicaps  industry, 
but  greatly  increases  the  cost  of  living  for  the  people 
of  Brazil.  Moreover,  manufacturers  in  our  own  coun- 
try are  also  handicapped  by  these  high  tariffs.  Hence 
I  shaped  my  question  as  follows: 

"When  inquiring  about  conditions  in  Brazil,  I  have 
always  been  referred  to  your  tariffs.  For  instance,  if 
I  speak  to  a  European  about  doing  business  in  Brazil, 
he  replies  that  the  greatest  handicap  to  selling  goods 
here  is  your  tariffs.  If  I  ask  a  banker  as  to  credits  in 
Brazil,  he  immediately  begins  to  tell  about  your 
tariffs,  which,  he  claims,  upset  credit  conditions.  Citi- 
zens of  North  America  are  especially  interested  in  this 
question  of  Brazilian  tariffs  at  the  present  time.  May 
I  ask  if  there  is  any  hope  for  a  scientific  revision  of  your 
tariffs  in  the  near  future?" 

In  reply  to  this  question,  the  Minister  said: 
"The  government  recognizes  that  this  is  a  very  im- 
portant question.    Under  the  direction  of  the  Ministry 


BRAZIL  325 

of  Finance,  careful  study  of  the  tariff  is  now  being  made. 
You  must  remember,  however,  that  tariffs  are  very 
troublesome  to  all  countries.  It  is  very  difficult  to 
make  changes  —  especially  downward  —  owing  to  the 
concentrated  opposition  of  a  small  number  of  man- 
ufacturers against  a  scattered  and  unorganized  effort 
of  the  people  as  a  whole.  INIoreover,  tariffs  provide  a 
very  easy  way  to  raise  revenue  and  employ  a  lot  of  men. 

"You  may,  however,  state  that  the  government,  the 
manufacturers,  and  the  people  are  pretty  well  convinced 
that  duties  are  now  fully  high  enough,  and  that  any 
further  change  must  be  downward.  In  other  words, 
tariff  conditions  will  be  no  worse,  and  the  chances  are 
fairly  bright  that  a  change  for  the  better  will  be  made. 
In  the  meantime,  I  urge  the  complainants  in  your 
country  to  study  our  tariffs,  a  schedule  of  which  can 
readily  be  obtained  from  your  government's  Foreign 
Trade  Department  in  Washington. 

"  In  this  connection,  I  will  also  add  that  my  country- 
men have  perhaps  overestimated  the  importance  of 
manufacturing,  or  rather  have  underestimated  the 
greater  importance  of  agricultural  and  pastoral  pur- 
suits. Hence,  the  policy  of  my  government  to-day  is 
to  extend  and  encourage  cattle  raising,  agriculture,  and 
all  similar  undertakings.  As  suggested,  the  govern- 
ment is  now  realizing  that  the  great  future  of  Brazil 
is  to  come  through  agriculture.  Brazil,  with  its  fertile 
soil,  humidity,  sunshine,  and  great  rivers,  is  destined 
to  feed  the  world.  Wise  will  your  people  be  to  recognize 
this.  Do  not  let  your  competitors  scare  you  about 
our  tariffs.  Remember  there  is  neither  an  export  nor 
import  tax  on  money,  and  it  is  money  that  you  all 
really  want." 


326  THE   FUTURE   OF   SOUTH  AMERICA 

It  is  surely  the  policy  of  the  different  State  govern- 
ments to  encourage  agriculture  more,  and  manufactur- 
ing less.  Although  it  is  often  a  nuisance  to  have  State 
governments  strong  and  independent  with  a  weak  fed- 
eral government,  such  as  exists  in  Brazil,  yet  this  con- 
dition presents  some  advantages  to  the  business  men 
and  others  of  South  America.  States  which  are  so  com- 
petitive and  jealous  of  each  other,  will  bid  against 
one  another  by  offering  concessions  and  other  in- 
ducements to  capital.  Thus  you  or  I  now  going 
to  Brazil  can  get  land  much  cheaper,  and  other 
favors  besides,  which  would  be  impossible  were  the 
States  more  closely  federated  under  a  strong  central 
government. 

I  also  learned  that  the  government  recognizes  that 
its  own  credit  is  very  bad  at  times,  and  that  the  per- 
manent refunding  of  its  indebtedness  is  most  intimately 
related  to  a  revision  of  its  tariff.  It  also  recognizes  that 
the  credit  of  its  merchants  is  sometimes  temporarily 
under  a  cloud.  On  the  other  hand,  the  government  in- 
sists that  it  is  a  great  mistake  for  foreigners  to  lump  all 
Brazilian  firms  together  as  "good,  bad,  or  indifferent." 
Both  the  stupendous  size  of  Brazil  and  the  different 
policies  of  the  various  States  make  it  foohsh  for  one  to 
rate  all  Brazilian  merchants  alike.  Moreover,  our  esti- 
mate of  these  merchants  should  be  given  all  the  more 
care  and  attention  as  the  products  of  the  different 
sections  continue  to  vary.  For  instance,  the  coffee 
States,  such  as  Sao  Paulo,  Minas  Geraes,  and  Rio  de 
Janeiro,  as  well  as  the  rubber  States,  such  as  Ama- 
zonas,  Para,  etc.,  sometimes  suffer  greatly,  owing  to 
the  decline  in  the  prices  of  coffee  and  rubber,  when 
business  is  good  in  some  of  these  northern  cities,  owing 


BRAZIL  327 

to  the  large  cacao  indiistr}-  developing  there,  and  in- 
creased prices  for  cacao. 

Another  interesting  feature  in  connection  with  the 
Brazilian  tariffs  is  the  apparently  honest  attempt  to 
place  the  heaviest  duties  on  luxuries.  This  is  a  laudable 
principle  to  follow  if  duties  are  to  be  levied;  but  unfor- 
tunately' no  two  people  agree  as  to  what  are  luxuries 
and  what  are  necessities.  ISIost  of  us  think  that  soap, 
talcum  powder,  and  similar  toilet  articles  are  necessi- 
ties, but  the  Brazilian  looks  upon  them  as  luxuries! 
Hence  we  are  astomided  to  find  a  duty  of  perhaps  a 
dollar  levied  on  a  cake  of  soap  or  a  small  can  of  talcum 
powder.  I  was  also  surprised  to  find  that  the  duties  on 
certain  outing  shirts,  belts,  etc.,  are  levied  on  the  weight 
per  pound  instead  of  on  the  value  or  the  quantity.  In 
connection  with  this  brain-racking  Brazilian  tariff  ques- 
tion, however,  it  should  be  said  that  manufacturers  of 
the  United  States  already  receive  a  preferential  on 
certain  articles.  Thus  there  is  no  valid  excuse  why  we 
should  not  do  much  more  business  in  Brazil  than  we 
now  do,  notwithstanding  the  tariffs,  credits,  and  vari- 
ous other  bugbears  which  English,  French,  and  Ger- 
mans continually  hold  up  before  us. 

While  traveling  about  the  West  Indies  and  South 
America,  I  have  alwaj's  made  a  point  of  collecting  sta- 
tistics on  the  price  of  land.  One  of  the  best  invest- 
ments procurable  is  land.  In  fact,  I  know  of  no  better 
investment  than  well-selected  land  suitable  for  agricul- 
ture or  homes.  One  must  not  pay  too  much,  of  course. 
Fundamental  conditions  should  be  studied  with  the 
same  care,  when  investing  in  land,  as  when  investing  in 
stocks  or  bonds.  If  agricultural  land  is  to  be  bought, 
one  should  select,  not  the  cheapest  on  the  market  nor 


328  THE  FUTURE  OF  SOUTH  AMERICA 

the  dearest,  but  that  which  will  net  the  most  wheat, 
corn,  or  other  products,  on  the  capital  to  be  invested. 
If  possible,  farm  land  should  be  bought  which  will  some 
day  be  wanted  for  building  purposes. 

Imagine  my  surprise  when  I  was  told  that  good  lands 
could  be  bought  in  southern  Brazil  for  thirty  cents  an 
acre.  Of  course,  such  lands  are  some  distance  from  the 
railroad,  and  in  virgin  country;  but  I  was  assured  that 
they  have  as  rich  soil  as  our  best  lands  in  Illinois  or  any- 
where in  the  great  Central  West.  As  these  prices  for 
land  in  Brazil  are  very  much  lower  than  for  similar 
land  in  other  South  American  countries,  I  ventured  to 
make  these  remarks  to  the  Minister : 

''Why  is  there  so  little  immigration  to  Brazil  when 
the  price  of  land  is  so  low?  When  in  Sao  Paulo  last 
week,  I  was  offered  several  large  tracts  of  land,  within 
seventy-five  miles  of  the  city  and  within  five  miles  of 
the  railroad,  at  prices  ranging  from  two  to  four  dollars 
an  acre.  This  land,  from  superficial  study,  compares 
with  land  selling  in  Argentina  for  sixty  dollars  an  acre. 
In  fact,  I  was  offered  a  large  tract  of  land  suitable  for 
cattle  in  the  western  part  of  the  State  of  Sao  Paulo, 
some  fifty  miles  from  the  railroad,  at  thirty  cents  an 
acre.  If  half  of  the  good  things  I  hear  about  Brazil  are 
true,  what  is  the  reason  for  these  very  low  prices  for 
land,  and  the  comparative  unpopularity  of  Brazil  with 
the  great  immigrating  races?  Is  it  due  to  the  reported 
uncertainty  of  land  titles?  On  account  of  the  strong 
family  ties  of  your  race,  have  titles  descended  by  word 
of  mouth,  and  are  they  consequently  not  clear  from  the 
foreign  point  of  view?  Are  the  reported  pests,  insects, 
and  various  diseases,  troubling  both  man  and  beast, 
another  difficulty  with  which  certain  sections  of  your 


BRAZIL  329 

country  are  handicapped?  What  steps  are  being  taken 
to  eradicate  these?" 

From  the  reply,  I  learned  that  the  government  recog- 
nizes that  there  are  questions  regarding  the  validity 
of  land  titles  in  certain  sections,  and  that  certain  foreign 
speculators  have  suffered  therefrom.  I  was,  however,  as- 
sured that  "if  your  people  from  North  America  will 
come  here  and  honestly  attempt  to  develop  our  coun- 
try instead  of  exploiting  it,  they  will  be  protected.  We 
are  very  anxious  to  have  foreign  capital  invested  here 
in  Brazil,  and  especially  in  land.  We  are  anxious  to 
have  colonists  brought  to  this  land.  Persons  who  come 
here  with  an  earnest  desire  to  help  us  succeed  will 
themselves  succeed.  We  are  in  the  same  position  that 
your  country  was  when  it  was  only  twenty-six  years 
old.  Then  some  of  your  early  settlers  in  the  West  had 
trouble  with  their  titles;  they  suffered  from  drought, 
and  sometimes  had  their  crops  destroyed  by  swarms  of 
locusts,  grasshoppers,  etc.  Brazil  offers  both  the  oppor- 
tunities and  the  hardships  which  your  States  of  Kansas 
and  Nebraska  offered  fifty  years  ago  —  no  more,  no 
less." 

Most  writers  insist  that  South  America  is  no  place 
for  a  man  without  capital.  Generally  speaking,  such 
advice  is  correct.  Don't  pull  up  stakes  and  take  your 
family  to  South  America.  If  you  are  a  family  man 
with  money,  there  is  no  need  of  doing  it ;  if  you  have 
not  money,  you  are  better  off  in  our  United  States 
than  in  the  United  States  of  any  other  continent.  There 
are  great  opportunities  in  South  America  —  wonder- 
ful opportunities  in  scores  of  difTcrcnt  lines.  I  have  in 
mind  a  dozen  separate  South  American  ventures  in 
which  I  know  a  l<jt  of  money  could  be  made.    But  they 


330  THE  FUTURE  OF  SOUTH  AMERICA 

all  require  capital,  whether  ranching,  farming,  manu- 
facturing, or  building.  After  many  journeys  in  many 
countries,  I  am  convinced  that  a  family  man  without 
capital  is  better  off  in  our  United  States  of  North 
America  than  anyAvhere  else  in  the  world. 

Generally  speaking,  there  is  no  middle  class  in  South 
America.  In  your  locality,  five  per  cent,  of  the  people 
are  rich,  and  perhaps  ten  per  cent,  are  poor;  but  eighty- 
five  per  cent,  belong  to  the  great  middle  class  of  which 
you  and  I  are  members.  To  a  small  extent  such  a  middle 
class  exists  (and  is  continually  increasing)  in  Argen- 
tina. But  taking  South  America  as  a  whole  —  Chile 
and  Brazil  in  particular  —  no  such  middle  class  exists. 
If  you  cannot  belong  to  the  ten  per  cent,  which  in- 
cludes the  well-to-do  and  the  government  officials,  then 
you  will  be  grouped  with  the  lower  classes. 

For  instance,  in  New  York  City  you  may  be  a  skilled 
carpenter,  receiving  from  four  to  five  dollars  a  day. 
If  so,  you  belong  to  the  great  middle  class.  Your  boy 
and  girl  have  as  good  a  chance  socially  as  have  any 
of  the  children  of  your  locality,  rich  or  poor.  All  the 
children  of  your  town  are  judged  by  what  they  are 
and  how  they  act.  Were  you,  however,  to  go  to  South 
America  without  capital,  you  would  not  be  classed  as  a 
skilled  carpenter,  and  your  children  would  be  handi- 
capped thereby.  The  South  Americans  don't  know 
what  skilled  carpenters  are!  If  you  should  go  with 
capital,  you  could  open  an  office  as  an  architect  or 
builder;  otherwise  you  would  be  classed  as  an  ordinary 
laborer,  and  paid  about  two  dollars  a  day,  which  is  the 
amount  paid  Italians  for  swinging  an  ax.  In  other 
words,  a  bright  carpenter  with  capital  could  go  to  South 
America  and  make  more  money  than  he  could  make 


BRAZIL  331 

in  the  United  States,  because,  having  capital,  he  would 
at  once  be  classed  as  an  architect  or  builder.  The 
same  man,  however,  without  capital,  would  get  less  in 
South  America,  because,  not  having  capital,  he  would 
be  classed  as  a  common  da}'-  laborer. 

When  it  comes  to  ranching  and  agriculture,  it  is  much 
the  same  story.  It  is  not  necessary  to  have  a  great  big 
ranch  or  farm.  Because  the  farms  of  South  America 
are  very  large,  the  idea  has  got  about  that  these  are 
the  only  kind  that  pay.  I  am  convinced  that  this  idea 
is  an  error.  A  small  farm  should  pay  as  well  in  Argen- 
tina, Chile,  or  Brazil,  as  in  Ohio,  Indiana,  or  Illinois. 
The  difference  comes  from  the  fact  that  a  man  with  a 
small  farm  usually  has  no  capital.  Hence  in  Brazil  he 
would  be  treated  as  a  "Dago,"  while  in  Ohio  he  would 
be  classed  with  you  and  me  —  so  long  as  he  paid  his 
bills  and  behaved  himself. 

There  is  only  one  possible  locality  in  South  America 
which  I  would  except  in  giving  such  advice.  This  is 
the  beautiful  and  temperate  area  of  southern  Brazil. 
There  is  no  doubt  that  in  this  section  lands  can  be  pur- 
chased for  five  dollars  an  acre  which  are  as  good  as  any 
land  in  Illinois  soiling  at  two  hundred  dollars  an  acre, 
and  with  a  much  better  climate.  The  difference  is  in 
the  surroundings  and  living  conditions.  The  man  who 
had  been  used  to  lUinois'  roads,  schools,  and  protec- 
tion would  be  very  much  disappointed  when  he  reached 
the  frontier  of  South  America.  If  you  buy  five-dollar 
land  in  South  America,  you  will  find  the  same  pioneer 
conditions  there  to-day  as  existed  in  Illinois  when  that 
land  sold  for  five  dollars  an  acre.  It  is  a  gun  country  in 
South  America.  A  man  there  to-day  must  have  the 
same  courage,  perseverance,  and  industry  as  had  tlie 


332  THE   FUTURE   OF   SOUTH  AMERICA 

pioneers  who  settled  our  great  Central  West  fifty  years 
ago.  If  you  are  a  young,  single  man,  with  good  char- 
acter, courage,  and  a  love  for  wild  life,  get  some  one  at 
home  to  stake  you  and  go  to  southern  Brazil.  If  you 
are  made  of  the  right  stuff,  and  know  your  business, 
you  can  there  make  a  lot  of  money  both  for  yourself 
and  your  silent  partner  at  home.  If,  however,  you  are 
a  family  man,  or  if  you  love  to  have  things  fairly  easy 
and  don't  like  to  struggle,  then  stay  at  home  where  you 
now  are.  Whether  you  buy  land,  stocks,  or  anything 
else,  it  is  impossible  to  get  more  than  one  hundred  cents 
for  one  dollar,  all  things  considered.  Security,  big 
profits,  and  ease  can't  be  found  together.  One  of 
these  three  factors  must  be  sacrificed.  Our  pioneering 
ancestors  forsook  the  easy  paths,  and  obtained  security 
and  big  profits,  but  you  and  I  give  up  the  profits  for 
security  and  ease. 

Finally,  I  wanted  to  secure  some  suggestions  from 
the  government  relative  to  more  business  between  our 
own  country  and  Brazil.  Therefore  I  asked,  in  closing: 
"Has  your  government  any  special  suggestions  as  to 
what  my  people  can  do,  other  than  to  cease  using  the 
name  'America,'  further  to  develop  business  relations 
between  us?" 

At  once  Doctor  Miiller  replied:  "First  and  foremost, 
your  banking  friends  should  organize  a  Bank  of  North 
America,  in  which  all  your  largest  banks  should  be  in- 
terested. This  should  be  a  large,  independent  institu- 
tion with  headquarters  in  Rio  de  Janeiro,  and  branches 
in  Sao  Paulo,  Santos,  Bahia,  Pernambuco,  and  several 
other  large  cities.  Remember  that  we  have  in  Brazil 
eleven  cities  of  fifty  thousand  people  or  more.  All  the 
other  foreign  nations  have  distinct  and  separate  banks 


BRAZIL  333 

of  their  own,  and  3'our  country  must  do  likewise. 
Just  at  present,  banking  conditions  here  may  be  inade- 
quate and  antiquated,  but  this  should  give  a  new  Bank 
of  North  America  all  the  better  opportunity.  Certainly 
you  can  never  expect  to  get  good  credit  reports  from 
English,  German,  and  other  competitive  banks."  (The 
opening  of  small  branches  in  South  America  by  banks 
already  existing  in  New  York,  Chicago,  and  elsewhere 
cannot  be  so  successful.) 

"At  the  present  time,  freight  and  cable  rates  are  very 
high  between  Brazil  and  your  country.  As  our  Bra- 
zilian Government  runs  its  own  steamship  line  between 
here  and  New  York,  we  are  not  so  badly  off  for  trans- 
portation to  your  cities  as  are  the  other  South  American 
countries.  However,  this  line  is  being  run  at  a  loss,  and 
there  is  room  for  great  improvement  in  shipping  con- 
ditions. We  Brazilians  gladly  welcome  all  efforts  made 
for  more  and  better  ships  under  the  so-called  '  American' 
flag.  There  is  great  and  immediate  need  for  cheaper 
cable  service.  At  present,  there  is  no  direct  cable  be- 
tween Brazil  and  your  country.  Consequently,  rates 
are  high,  and  the  service  seems  to  be  very  unsatisfac- 
tory^ to  most  of  your  countrymen. 

"We  also  need  more  labor  here  in  Brazil.  Foreign- 
ers claim  that  our  labor  is  very  inefficient.  If  so,  you 
North  Americans  must  send  down  men  and  machinery 
as  well  as  ships  and  money."  (As  soon  as  the  titles  to 
their  lands  are  straightened  out,  immigration  to 
Brazil  should  rapidly  increase.  Moreover,  as  the 
patriarchal  system  of  government  and  ownership  of 
land  still  existing  in  the  interior  is  gradually  broken  up, 
there  should  be  great  immigration  into  the  interior.) 

"But  there  is  another  thing  which  you  people  could 


334  THE  FUTURE  OF  SOUTH  AMERICA 

do  that  would  serve  as  a  wonderful  means  of  bringing 
us  together.  It  is  sort  of  a  pet  project  of  mine.  I  re- 
ferred to  it  when  in  your  country  in  1913.  It  is  that 
some  of  the  business  men  representing  the  alumni  of 
Harvard,  Yale,  Princeton,  and  your  other  universities, 
club  together  and  start  a  real  'American'  college  in  Rio 
de  Janeiro.  Here  is  a  great  opportunity.  Some  of  your 
churches  are  doing  it  in  a  small  way.  Mackenzie  Col- 
lege at  Sao  Paulo  is  making  good  progress.  We  need  a 
real  big  affair  here  in  Pio  de  Janeiro  with  professors 
from  your  country  teaching  the  English  language  and 
the  North  American  ways  to  our  boys." 


CHAPTER  XVIII 

Mistakes  in  Our  Latin-American  Trade 
Relations 

With  a  better  knowledge  of  South  America,  and  a 
realization  of  the  opportunities  existing  in  that  com- 
paratively undeveloped  continent,  has  come  a  great 
desire  on  the  part  of  our  business  men  for  further  trade 
relations.  Up  to  the  present  time,  we  have  played  little 
part  in  South  America,  and  we  never  will  play  more  if 
we  continue  making  the  mistakes  which  have  charac- 
terized our  policies  hitherto.  What  these  mistakes 
have  been  I  shall  let  the  people  of  South  America  tell 
for  themselves  in  this  chapter. 

First,  however,  I  want  to  emphasize  the  fact  that  the 
development  of  such  trade  relations  means  much  to 
every  one  in  the  United  States  and  not  only  to  those 
who  actually  come  into  contact  with  foreign  relations. 
It  is  needless  for  me  to  explain  that  ultimately  wages  are 
subject  to  the  law  of  supply  and  demand.  Whatever 
labor  unions  may  temporarily  accomplish  in  raising 
wages  will  be  largely  offset  by  increased  prices,  unless 
manufacturing  and  distributing  costs  can  be  reduced. 
Such  results  can  be  accomplished  either  through  greater 
efficiency  or  increased  sales. 

We  should  all,  therefore,  work  to  have  our  manufac- 
tuHTs  soil  more  goods.  Increased  orders  in  any  line 
h('l[)  labor  in  other  lines,  and  tiius  aid  tlu;  general  pros- 


336  THE  FUTURE  OF  SOUTH  AMERICA 

perity.  If  we  can  gain  and  retain  the  trade  of  South 
America,  the  United  States  will  witness  the  greatest 
period  of  prosperity  in  its  history,  accompanied  by 
higher  wages  and  other  things  for  which  we  have  all  been 
working.  Every  reader  of  this  book  has  a  personal 
interest,  therefore,  in  helping  the  manufacturers  of 
this  country  to  come  into  closer  relations  with  South 
America.  Hence  it  is  up  to  all  of  us  to  help  our  Ad- 
ministration at  Washington,  the  Pan-American  Union, 
and  all  agencies  and  individuals  endeavoring  to  bring 
this  about.  Our  ambassadors,  ministers,  and  all  others 
connected  with  the  diplomatic  and  consular  service 
deserve  our  special  appreciation,  and  their  work  Con- 
gress should  recognize  by  paying  greater  salaries. 

In  discussing  our  trade  relations  with  South  America, 
it  must  be  said  at  the  outset  that  we  have  failed  to  get 
either  our  due  share  of  the  trade  of  the  country  or  to 
reaHze  and  avail  ourselves  of  the  opportunities  for  in- 
vestment in  this  rich  and  prosperous  land.  Unlike  the 
other  great  merchandising  and  investing  countries,  we 
in  the  United  States  have  made  no  serious  attempt  to 
study  the  problems  of  these  countries,  and  when  we 
have  tried  to  get  their  trade,  we  have  made  countless 
mistakes  through  our  ignorance. 

How  our  manufacturers  have  failed  in  comparison 
with  the  manufacturers  of  other  countries  is  well  illus- 
trated by  the  following  statement  of  one  of  my  South 
American  friends: 

"I  have  just  read  an  article  in  a  New  York  magazine 
telling  of  the  great  pioneer  work  which  has  been  done 
in  South  America  by  the  Standard  Oil  Company,  the 
Singer  Sewing  Machine  Company,  the  United  Shoe 
Machinery  Company,  and  others.    The  article  states 


MISTAKES  IN  OTTi   TRADE   RELATIONS       337 

that  these  concerns  have  quietly  been  doing  business 
here  for  years  and  deserve  great  credit;  that  'instead 
of  criticising  North  American  manufacturers  for 
stupidly  neglecting  South  American  trade,  we  should 
praise  them  for  their  great  industry  and  perseverance.' 

"Let  me  call  your  attention  to  the  fact  that  all  such 
concerns  from  the  United  States  have  monopolies  in 
their  Unes.  This  monopoly  may  come  through  the  con- 
trol of  transportation  or  of  patents,  or  of  some  other 
exclusive  feature;  but  it  is  monopoly,  nevertheless. 
Such  concerns  are  not  depending  on  their  energy  and 
efficiency  to  get  business,  but  on  some  artificial  sup- 
port. In  fact,  I  know  of  no  product  in  which  your 
people  have  built  up  a  trade  in  South  America  in  fair 
and  equal  competition  with  merchants  of  other 
nations." 

Time  and  time  again  our  export  merchants  are 
accused  of  stupidity,  and  I  make  this  emphatic  through- 
out this  book,  for  I  feel  that  this  point  cannot  be  brought 
home  too  strongly  to  our  merchants  and  manufacturers. 

As  a  typical  illustration  of  this  point,  I  quote  a  mer- 
chant of  Brazil: 

"As  your  people  in  the  United  States  buy  so  much  of 
our  coffee,  they  would  have  a  wonderful  opportunity 
to  secure  trade  in  return,  if  they  were  not  so  stupid. 
Take  the  question  of  samples,  for  instance.  About 
six  weeks  ago,  I  sent  to  a  New  England  manufacturer 
for  a  sample  of  his  sheepskins.  Imagine  my  surprise 
to  receive  a  h)ill  for  them.  If  he  had  asked  me  to 
return  them,  that  would  have  been  all  right,  although 
very  unusual.  But  to  be  sent  a  bill  was  too  much. 
I'm  surprised  he  did  not  send  them  with  draft  at- 
tached! 


338  THE  FUTURE  OF  SOUTH  AMERICA 

"  The  Germans  have  not  only  given  us  all  the  samples 
we  want,  but  they  buy  our  goods  and  take  samples 
back  to  Germany  to  show  the  German  manufacturers 
what  we  like  to  buy  and  use.  Custom  officers  have 
even  told  me  that  the  samples  which  the  Germans  took 
home  even  exceeded  the  samples  that  they  bring  to  us. 
In  fact,  they  do  not  need  to  use  samples  at  all,  for  they 
can  point  to  our  goods  and  say :  '  We  will  deh ver  these 
here  in  your  store,  freight,  duties,  etc.,  fully  paid,  for 
so  many  dollars  per  gross.'  Your  salesmen  are  too 
stupid  to  figure  that  way.  They  will  give  us  a  price 
for  New  York  delivery  and  leave  us  to  figure  freight, 
duties,  cartage,  insurance,  exchange,  etc.  The  result 
is  that  we  never  take  the  trouble  to  figure  all  this  out, 
but  buy  the  goods  from  Germany  instead." 

Perhaps  my  friend  was  not  quite  fair  to  the  salesman 
from  the  United  States.  The  trouble  lies  with  his 
house.  They  want  the  trade,  but  if  a  salesman  should 
send  in  an  order  otherwise  than  f.o.b.^  New  York,  it 
would  be  turned  down.  The  average  manufacturer 
has  n't  the  enterprise  to  make  such  calculations.  It 
is  too  foreign  to  his  experience.  He  wants  to  do  ex- 
port trade  on  the  same  conditions  as  he  would  with  a 
distant  State,  and  cannot  or  will  not  understand  the 
necessity  for  doing  otherwise. 

Then,  too,  the  United  States  manufacturer  is  too 
independent  in  his  attitude  along  other  lines,  as  is  well 
illustrated  by  the  experience  of  a  merchant  in  Buenos 
Aires.     He  told  me: 

"We  made  arrangements  in  1903  or  1904  to  buy 
goods  of  a  New  York  concern  which  represented  several 
large  factories  manufacturing  machinery,  hardware, 
and  similar  lines.    At  first  we  gave  them  only  two  or 


MISTAKES   IN   OUR   TRADE   RELATIONS       339 

three  trial  orders,  but  we  liked  the  goods  so  much  that 
we  gave  up  purchasing  from  Europe  with  the  idea  of 
making  all  purchases  from  your  country.  We  just  had 
your  hne  well  introduced  when  we  suddenly  received 
word  that  'owing  to  the  increased  home  demand  we 
will  be  unable  to  fill  more  orders  for  at  least  six  months.' 
When  business  was  dull,  they  came  here  to  sell  their 
surplus;  but  as  soon  as  the  demand  in  the  States  re- 
vived, we  were  cut  off!  As  our  foreign  European  con- 
nection had  been  broken,  it  was  verj^  awkward  for  us  to 
pick  it  up  again,  especially  at  a  time  when  they  like- 
wise were  very  busy.  No,  never  again  will  I  be  caught 
that  way.  I  much  prefer  to  deal  with  the  Enghsh,  Bel- 
gian, and  German  firms  who  are  always  dependent 
upon  export  business,  and  who  are  anxious  to  retain  it 
continously.  I  never  again  will  depend  upon  concerns 
in  the  United  States  who  come  here  only  when  busi- 
ness is  dull  to  sell  us  their  surplus." 

That  the  ideas  of  the  people  of  the  countries  differ 
from  ours,  I  have  emphasized  several  times.  This 
must  be  understood  by  the  man  or  the  firm  striving 
for  South  American  trade,  as  is  well  shown  by  the 
statement  of  a  merchant  in  Rio  de  Janeiro: 

"  You  wonder  why  it  is  that  we  Latin-Americans  shun 
new  ideas  and  products,  when  you  people  of  the  north 
seem  to  seek  something  just  because  it  is  new.  Per- 
haps we  are  wrong,  and  you  are  right.  The  fact,  how- 
ever, exists  that  it  is  very  difficult  to  introduce  any- 
thing new  here.  Men  coming  from  more  up-to-date 
countries  are  continuously  asking  why  we  do  this  or 
don't  do  the  other,  and  suggesting  that  some  one  could 
make  a  lot  of  money  by  introducing  here  the  more 
modern  method.     Let  me  tell  you  that  nearly  every 


340  THE  FUTURE  OF  SOUTH  AMERICA 

such  idea  has  been  tried,  but  has  failed  to  make  money. 
Milkmen  in  Brazil  drive  the  cows  about  town  and  milk 
them  at  each  customer's  door,  because  their  customers 
demand  such  service.  The  people  want  to  be  sure  that 
the  milk  is  fresh,  and  they  are  willing  to  pay  more  to 
have  it  delivered  in  this  way,  which  appears  quaint 
and  out  of  date  to  you." 

Another  merchant  in  Rio  de  Janeiro  told  me:  "The 
greatest  opportunity  for  South  American  trade  is  for 
manufacturers  of  specialties  that  have  a  large  margin 
of  profit.  All  such  who  have  come  here  intelhgently 
for  our  trade  have  made  money.  The  unfortunate  ones 
are  those  who  sell  staple  products  with  a  small  margin 
of  profit.  Unless  such  manufacturers  can  give  terms 
so  as  to  be  able  to  ask  higher  prices,  or  else  use  South 
America  only  for  a  dumping  ground  for  surplus  goods, 
they  doubtless  could  make  more  money  with  the  same 
capital  and  risk  in  United  States  trade.  This,  of 
course,  apphes  only  to  present  profits.  Because  the 
manufacturer  of  staple  products  might  be  unable  to 
make  a  profit  on  South  American  business  at  present, 
he  may  be  laying  the  foundation  for  a  larger  business 
later.  The  ones  to  lay  the  foundations  now  will  be  the 
first  to  reap  the  profits.  Some  of  your  people  object  to 
our  market  because  we  demand  a  different  style  of 
goods  from  what  they  now  make.  What  of  it  if  we 
do?" 

Many  of  our  merchants  have  had  troubles  with  the 
officials  of  the  various  governments,  and  the  charges  of 
graft  have  been  freely  made.  One  of  my  South  Amer- 
ican correspondents  says  of  this: 

"North  Americans  make  a  stupid  mistake  by  letting 
our  government  officials  blackmail  them.     It  is  true 


MISTAKES   IN   OUR   TRADE   RELATIONS       341 

that  our  countries  are  full  of  graft,  but  this  rotten  con- 
dition of  affairs  is  due  to  the  foreigners  who  have  paid 
this  graft.  Our  government  officials  are  young  and 
weak.  The  Enghsh,  Germans,  French,  and  others 
desiring  concessions  of  various  kinds  have  tempted 
and  ruined  them.  We  natives  never  give  graft  unless 
compelled  to  do  so  when  competing  with  foreigners. 

"Tell  your  countrj-men  that  they  have  a  great  op- 
portunity to  redeem  themselves  and  us  also  by  refus- 
ing to  pay  graft  of  any  kind  to  our  officials  and  our 
press.  None  of  us  natives  like  it.  Every  one  suffers 
from  it.  If  you  North  Americans  will  unite  in  refusing 
to  be  a  party  to  it,  we  natives  will  rally  to  your  support. 
Dishonesty  is  rampant  throughout  South  America,  but 
it  can  be  checked  only  by  honest  example.  If  j^our 
people  will  set  us  such  an  honest  example,  it  will  give 
your  country  great  influence  down  here." 

I  have  written  repeatedly  of  the  necessity  of  form- 
ing a  Bank  of  North  America.  A  banker  in  Rio  de 
Janeiro  gives  the  following  illuminating  sidehght  on 
the  present  situation: 

"We  are  constantly  amused  to  read  the  speeches 
made  by  New  York  and  Chicago  bankers  pleading  for 
more  cooperation  between  banks  in  North  and  South 
America.  These  remarks  show  great  ignorance  on  the 
part  of  United  States  bankers. 

"Before  there  can  be  any  such  interchange  as  you 
suggest,  there  must  first  be  established  cooperation 
among  the  banks  of  South  America.  Even  the  banks 
of  Brazil  will  not  trust  one  another.  The  banks  of  Rio 
de  Janeiro  will  not  accept  one  another's  checks,  even 
for  deposit,  until  they  are  first  certified.  This  is  why 
no  clearing-house  exists  in  Rio.    I  am  an  officer  of  one 


342  THE  FUTURE  OF  SOUTH  AMERICA 

of  the  most  progressive  banks  in  the  city,  but  if  some 
one  should  pay  you  with  a  check  drawn  on  any  other 
bank,  and  you  should  send  that  check  here  for  deposit, 
I  would  first  want  it  certified.  This  is  another  reason 
why  the  'U.  S.  A.'  bankers  should  get  together  and 
create  a  great  Bank  of  North  America  with  branches 
all  over  Latin  America." 

But  in  considering  the  opportunities  offered  by  this 
great  southern  continent,  we  must  remember  that  the 
problem  of  selling  is  not  the  only  one  of  importance. 
This  was  expressed  frankly  by  one  of  the  business  men 
whom  I  met,  and  I  quote  him  as  follows : 

"The  great  opportunities  in  South  America  to-day 
are  opportunities  to  buy.  Not  only  can  much  money 
be  made  by  exporting  known  products,  such  as  rubber, 
cocoa,  dyewoods,  mandioca,  and  yerha  mate,  but  there 
must  be  many  unknown  products  of  great  wealth  to 
be  found.  Great  opportunities  await  the  chemists, 
mineralogists,  and  botanists  who  will  study  our  forests. 
There  are  probably  many  other  products  here  as  valu- 
able as  rubber  —  but  to-day  they  are  unknown. 

"Although  the  jungle  is  hard  to  penetrate,  yet  it  is 
not  so  hot  in  all  parts  of  the  country  as  it  has  been 
described.  Remember  that  in  certain  cities  of  the 
tropics,  people  with  furs  may  be  seen  on  one  side  of 
the  streets,  and  on  the  other  side  people  with  bare  feet. 
It  is  always  cool  in  the  breeze  and  shade.  As  machinery 
and  the  gasohne  motor  are  applied  to  the  cultivation 
of  cotton,  cocoa,  etc.,  the  money-making  opportunities 
of  raising  products  here  for  export  will  be  unlimited. 
Don't  look  only  for  opportunities  to  sell,  but  consider 
also  opportunities  to  produce  and  buy." 

The  idea  that  one  must  go  "around"  South  America 


MISTAKES   IN   OUR   TRADE   RELATIONS       343 

in  order  to  make  a  real  trip  is  certainly  a  mistake. 
From  a  business  point  of  view,  such  a  trip  wastes  much 
valuable  time,  and  from  a  pleasure  point  of  view,  one 
goes  through  much  unnecessary  discomfort  in  attempt- 
ing to  encircle  the  continent.  If  you  wish  to  visit 
South  America  on  business,  take  the  best  steamer  pro- 
curable, with  an  upper,  outside  stateroom  on  the  ocean 
side,  and  go  directly  to  Rio  de  Janeiro,  Montevideo, 
and  Buenos  Aires.  At  present  don't  worry  about  the 
West  Coast  for  business.  With  the  exception  of  Lima 
and  Antofagasta,  there  is  httle  on  the  west  side  but 
Valparaiso  and  Santiago  de  Chile.  These  latter  two 
places  are  near  together,  and  can  be  reached  easily 
overland  from  Buenos  Aires.  Moreover,  Lima,  Antofa- 
gasta, and  the  other  growing  West  Coast  towns  can  now 
be  best  handled  through  large  commission  houses. 
But  with  regard  to  commission  houses,  let  me  repeat 
the  warning  of  one  of  my  Valparaiso  friends,  who  said : 

"Tell  your  people  that  they  should  either  have  their 
own  representatives  in  South  America  or  else  estabhsh 
rehable  and  friendly  commission  houses  operated  by 
citizens  of  the  United  States.  Not  only  are  nearly  all 
the  commission  houses  here  in  the  hands  of  Germans 
and  other  foreigners,  but  your  own  exporters  in  New 
York  are  mostly  Germans." 

The  East  Coast  is  active  and  rich.  Argentina  is 
worth  a  visit  of  itself;  Uruguay  is  also  wealthy,  though 
small;  and  Brazil  is  fast  coming  to  the  front.  Although 
Brazil  is  poor  to-day,  she  has  vast  possessions,  and 
some  very  good  cities.  For  business,  I  advise  you  to 
spend  most  of  your  time  at  first  in  the  territory  lying 
between  BahiaBlanca  and  Riode  Janeiro.  The  business 
opportunities  are  to  be  found  in  the  temperate  zone; 


344  THE   FUTURE   OF   SOUTH  AMERICA 

don't  now  bother  with  the  tropics.  When  going  to 
South  America  for  business,  don't  go  between  Novem- 
ber and  April,  as  this  is  the  summer  time,  when  the 
Brazihans  and  Argentines  go  away.  During  January 
and  February  it  is  almost  impossible  to  see  the  import- 
ant South  American  people  on  business. 

If  you  wish  to  visit  South  America  for  pleasure,  take 
an  express  steamer  from  New  York  to  Colon,  pass  across 
the  Isthmus  by  train,  and  take  the  best  Pacific  steamer 
to  Mollendo,  Peru.  These  boats  stop  at  Callao  (Lima) 
and  other  ports.  At  Mollendo,  the  steamer  may  be 
left  and  a  trip  made  to  Arequipa,  Cuzco,  and  La  Paz, 
returning  to  the  coast  at  either  Arica  or  Antofagasta, 
Chile.  In  this  way,  the  traveler  may  gain  a  good  idea 
of  the  life  and  habits  of  the  different  nationalities.  He 
may  visit  the  highest  city  in  the  world  (La  Paz),  the 
oldest  city  in  the  Western  Hemisphere  (Cuzco),  and  see 
the  ruins  of  the  Inca  civilization,  which  compare  both 
in  antiquity  and  originality  with  the  Pyramids  and 
temples  of  Egypt. 

I  have  said  that  business  men  should  not  visit  the 
East  Coast  in  their  summer  or  our  winter.  The  trip  is 
hot  and  disagreeable  at  that  time.  When  visiting  the 
West  Coast,  however,  the  opposite  rule  should  be  fol- 
lowed. The  weather  on  the  West  Coast  during  our 
summer  is  always  cloudy,  cold,  and  often  very  foggy. 
During  January,  February,  and  March,  the  weather  is 
beautiful.  From  Cuba  to  Panama,  the  sail  is  hot,  but 
from  Panama  to  Mollendo  and  Antofagasta,  it  is  per- 
fect. There  is  hardly  a  cloud  in  the  sky,  the  moon  and 
stars  shine  wonderfully  bright  at  night,  and  a  cool 
breeze  blows  all  the  time. 

I  venture  to  forecast  that  the  great  winter  trip,  some 


MISTAKES   IN   OUR   TRADE   RELATIONS       345 

years  hence,  will  be  by  express  steamers  via  Panama 
down  the  West  Coast  direct  to  Cuzco  and  La  Paz. 
With  two  weeks  ashore  in  this  wonderful  country,  the 
round  trip  could  be  made  in  six  weeks.  This  would 
give  a  splendid  sea  trip  in  temperate,  sunny  waters, 
with  two  weeks  away  from  the  world  in  the  Egypt  of 
the  Western  Hemisphere,  the  last  spot  of  real  antiquity 
that  has  not  been  spoiled  by  the  tourist.  Personally, 
I  am  very  fond  of  Peru,  and  believe  that  a  great  op- 
portunity exists  for  switching  North  American  travel- 
ers from  Europe  and  Egypt  to  Peru  and  Bolivia. 
Those  of  us  who  love  Peru  should  at  once  unite  in 
such  a  campaign.  This  travel  to  the  West  Coast 
would  not  only  be  much  appreciated  by  our  people, 
but  would  result  in  securing  for  Peru,  Chile,  and  the 
other  countries,  the  capital  they  now  so  much  need. 


CHAPTER  XIX 

South  American  Investments 

We  have  heard  a  great  deal  about  the  opportunities 
for  selling  goods  in  South  America,  but  little  about  the 
chances  for  profitable  investment  of  money  in  that  terri- 
tory. Yet  the  two  should  go  together,  if  we  are  to  hold 
the  trade  which  we  are  now  securing  and  will  secure  in 
the  future.  We  hear  something  about  the  need  of  buy- 
ing raw  materials  from  South  America,  but  nothing 
about  the  necessity  of  buying  bonds  which  the  people 
of  the  Argentine,  Chile,  and  Brazil  must  soon  issue. 
However,  I  beheve  from  my  study  of  statistics  that 
there  may  now  be  a  greater  opportunity  for  profit  to 
us  in  the  investment  of  money  than  in  the  securing  of 
trade.  Certainly  the  great  opportunities  in  South 
America  to-day  are  in  the  sale  of  goods  for  which  bonds 
can  be  taken  in  exchange,  and  such  business  gives  the 
sellers  a  double  profit  with  little  competition. 

Up  to  the  present  time,  the  Enghsh,  French,  and  Ger- 
mans have  financed  South  America.  Not  only  have 
the  business  interests  of  these  European  countries  taken 
bonds  in  payment  for  materials,  but  the  investors  of 
these  same  countries  are  better  acquainted  with  the 
cities  of  Buenos  Aires,  Rio  de  Janeiro,  Santiago,  Sao 
Paulo,  Rosario,  and  Mendoza  than  with  the  cities  of 
New  York,  Chicago,  Philadelphia,  and  Boston.  When 
in  London  and  Paris,  I  have  been  astonished  at  the 
pubHc  offerings  of  bonds  of  South  American  cities  and 


SOUTH   AMERICAN   INVESTMENTS  347 

corporations  of  which  I  had  never  heard  but  with 
which  the  small  investors  of  England  and  France  ap- 
peared to  be  famihar.  Tliis  suggests  an  obvious  and 
fundamental  difficulty  with  which  we  must  contend 
when  endeavoring  to  secure  Latin-American  trade. 

On  the  other  hand,  Europe,  for  some  time  to  come, 
cannot  finance  these  countries  as  exclusively  as  in  the 
past.  Tliis  not  only  inflicts  a  great  hardship  upon 
Argentina,  Brazil,  Chile,  and  the  other  countries,  but 
also  offers  us  a  great  opportunity.  Certainly  only  in 
financing  these  countries  can  we  hope  to  retain  their 
trade.  Hence  the  great  importance  of  our  taldng  South 
American  securities,  if  possible. 

There  is  as  much  difference  in  South  American  gov- 
ernment bonds  as  in  United  States  corporation  bonds. 
We  have  formed  the  unfortunate  habit  of  considering 
all  government  and  municipal  bonds  good.  Therefore 
when  we  hear  of  some  of  them  that  are  not,  our  faith  is 
greatly  shattered;  yet  we  do  not  lose  faith  in  all  rail- 
way or  pubhc  utility  bonds  because  some  default.  We 
must  first  learn  to  treat  the  bonds  of  South  American 
countries  and  cities  in  the  same  way  that  we  treat  our 
own  corporation  bonds.  Because  a  bond  is  a  "muni- 
cipal" we  must  not  think  it  is  necessarily  good.  Be- 
cause a  municipal  bond  in  Argentine,  Chile,  or  Brazil 
goes  wrong,  we  must  not  become  prejudiced  against  all 
the  municipal  bonds  of  all  South  American  cities. 

The  government  bonds  of  Argentina  are  said  to  be 
absolutely  safe;  the  government  bonds  of  Brazil,  on 
the  contrary,  are  seriously  questioned;  while  the  gov- 
ernment bonds  of  other  countries  are  ranked  from  safe 
to  questionable  in  aljout  the  following  order:  Uruguay, 
Peru,  Venezuela,  Bolivia,  Paraguay,  and  Colombia. 


348  THE  FUTURE  OF  SOUTH  AMERICA 

I  have  been  rather  surprised  to  find  that  Latin- 
American  municipal  bonds  as  a  class  are  not  in  very- 
good  repute  among  the  well-to-do  people  of  South 
America.  For  some  reason  or  other,  people  there  have 
not  much  confidence  in  this  variety  of  bond.  Municipal 
bonds  of  Latin  America  are  usually  not  to  be  recom- 
mended, except  in  cases  where  sufficient  arrangements 
have  been  provided  in  advance  to  insure  the  prompt 
payment  of  interest.  The  municipal  bonds  of  cities  like 
Buenos  Aires,  Sao  Paulo,  and  Valparaiso  are  probably 
safe  for  principal  and  interest;  but  a  prompt  payment 
of  interest  on  even  the  best  Latin-American  municipals 
must  not  always  be  expected.  Hence  dealers  in  such 
bonds  should  continually  watch  over  their  issues  and 
be  sure  that  the  cities  reserve  the  money  with  which  to 
pay  the  interest  and  installments  of  principal  when  due. 

There  is  another  class  of  bonds  common  in  South 
America  which  are  known  as  "State  bonds."  In  some 
countries,  like  Brazil,  certain  of  the  States  are  stronger 
financially  than  the  federal  government.  For  instance, 
the  State  of  Sao  Paulo  —  of  which  the  city  of  Sao 
Paulo  is  the  capital  —  has  very  good  credit.  The  na- 
tive people  seem  to  prefer  these  State  bonds  to  the 
municipal  bonds.  One  objection,  however,  is  that  the 
State  often  guarantees  the  bonds  of  one  or  more  of  its 
important  cities,  so  that  the  liabiHties  of  cities  and 
States  are  often  considerably  mixed  up.  This  in  some 
cases  also  applies  to  federal  affairs.  Certain  of  the  City 
of  Santiago,  Chile,  six  per  cent,  bonds  which  are  guaran- 
teed by  the  federal  government  are  a  good  example. 
The  fact  that  these  can  be  purchased,  "guaranty  and 
all,"  for  such  a  low  price,  shows  how  this  particular 
issue  stands  in  the  eyes  of  most  investors. 


SOUTH  AMERICAN  INVESTMENTS  349 

The  great  speculative  feature  connected  with  these 
South  American  securities  is  the  fact  that,  with  very- 
few  exceptions,  they  are  payable  in  paper  money.  The 
few  exceptions  are  certain  issues  sold  in  England  for 
gold  and  also  payable  in  gold  at  a  certain  fixed  rate. 
The  regular  government.  State,  and  municipal  bonds 
are  payable  in  paper  and  purchasable  by  paper.  For 
instance,  a  few  years  ago  a  one  thousand  peso,  City  of 
Santiago,  six  per  cent,  bond  sold  at  about  par.  The  peso 
was  then  worth  twcnt3^-two  cents;  hence  such  a  bond 
would  have  cost  S220  in  gold.  Two  years  later,  the  same 
bond  not  only  had  fallen  to  eighty  in  price,  but  pesos 
could  be  bought  for  fourteen  cents  in  gold.  Thus  the 
purchase  price  of  the  bond  became  only  $112.  There- 
fore, when  buying  such  bonds,  the  buyer  must  figure 
both  on  the  financial  strength  of  the  government  and 
on  the  prospective  value  of  the  currency.  It  is  a  fact, 
however,  that  a  sudden  depreciation  in  the  currency 
tends  to  hold  up  the  market  price  of  the  bonds,  al- 
though this  gives  only  partial  relief  to  the  owners. 

Considering  how  greatly  the  currency  of  Chile, 
Brazil,  and  other  countries  has  depreciated  in  value 
during  the  past  twenty  years,  those  who  now  have 
bonds  which  they  purchased  years  ago  must  have  suf- 
fered great  losses.  Even  though  their  bonds  may  sell 
at  the  same  quoted  price  as  when  they  purchased  them, 
yet  the  paper  money  which  they  receive  as  interest  is 
worth  perhaps  only  half  as  much  as  formerly.  This 
also  applies  to  the  one  thousand  pesos  which  they  will 
receive  when  the  bonds  become  due.  Of  course  the 
profits  are  likewise  great  when  the  peso  is  appreciating, 
but  currency  depreciation  at  present  seems  to  be  much 
more  common  than  currency  appreciation. 


350  THE  FUTURE  OF  SOUTH  AMERICA 

Another  peculiar  feature  of  South  American  bonds 
is  that  all  of  the  issues  of  a  given  government,  State,  or 
municipality  are  not  given  equal  security.  The  gov- 
ernment, State,  and  municipal  bonds  in  the  United 
States,  for  instance,  are  usually  plain  debentures  un- 
secured by  any  special  taxes.  If  our  federal  government, 
for  example,  should  default  upon  one  issue,  it  would  de- 
fault upon  all;  but  this  is  not  necessarily  the  case  with 
South  American  securities.  Two  federal  issues  of  Brazil 
may  pay  the  same  interest  and  be  due  at  the  same 
date,  but  still  may  sell  at  entirely  different  prices. 
The  reason  is  that  the  higher-priced  issues  are  secured 
by  special  import  duties.  Even  in  the  case  of  certain 
municipalities,  this  distinction  in  securities  is  in  evi- 
dence. Some  municipal  bond  issues,  in  addition  to 
being  obligations  of  the  entire  city,  are  secured  by  some 
special  taxes  such  as  income  taxes  from  professional 
men,  liquor  stores,  or  lottery  tickets.  As  a  rule,  such 
specially  secured  bonds  are  worth  the  extra  price. 

My  South  American  friends  advise  me  that  usually 
the  best  purchase  of  any  of  their  securities  are  the  "ce- 
dulas,"  considering  safety,  rate  of  income,  and  pros- 
pective profit.  Interest  rates  in  general  are  very  high 
throughout  Latin  America.  In  1915  good  mortgages 
could  be  secured  by  local  investors  in  Buenos  Aires, 
Santiago,  and  Rio  de  Janeiro  to  net  about  twelve  per 
cent.  Most  South  Americans  with  money  take  such 
mortgages  in  preference  to  government.  State,  or  mu- 
nicipal bonds.  Very  few  stocks  are  dealt  in  by  South 
Americans.  Their  speculative  desires  have  an  outlet 
in  betting  on  the  races  or  in  buying  lottery  tickets. 
These  cedulas  have  been  invented  for  the  small  in- 
vestors who  cannot  take  entire  mortgages.    They  are 


SOUTH  AMERICAN   INVESTMENTS  351 

much  like  the  Credit  Foncier  bonds  which  are  issued 
in  France  and  other  countries.  A  mortgage  bank 
wliich  sells  bonds  is  formed  under  government  direc- 
tion. It  loans  the  money  received  from  the  sale  of 
such  bonds,  in  small  amounts  on  mortgage  at  about 
sixty  per  cent,  of  the  property  value.  The  borrower 
pays  a  certain  amount  each  year,  which  automatically 
paj's  both  interest  and  principal.  The  bank  uses  a 
portion  of  the  interest  money  to  pay  the  interest  on  its 
bonds,  or  cedulas,  and  the  balance  for  expenses,  re- 
serve, etc.  The  small  principal  payments  are  lumped 
together,  and  the  total  is  used  for  retiring  a  portion 
of  the  cedulas,  those  to  be  retired  being  selected  by 
drawings.  These  cedulas  are  eagerly  sought  by  in- 
vestors who  have  not  enough  money  to  take  entire 
mortgages.  Moreover,  as  they  are  accepted  by  the 
mortgage  company  as  cash  in  payment  for  principal, 
they  are  constantly  being  bought  for  this  purpose,  and 
are  sold  in  all  South  American  countries. 

BoHvian  cedulas  have  sold  at  about  fifty,  but  those  of 
the  northern  countries  are  also  very  low  in  price.  Only 
those  of  Argentina  and  Chile  deserve  first  considera- 
tion. The  Argentine  cedulas  pay  six  per  cent,  interest, 
and  now  sell  at  about  eighty-five,  thus  yielding  about 
eight  per  cent.  The  Chilean  cedulas  also  pay  six  per 
cent,  or  more,  and  sell  for  even  less.  The  payment  of 
the  interest  and  the  principal  of  these  should  be  fairly 
safe,  as  such  cedulas  are  well  secured  by  good  property, 
and  the  banks  arc  usually  well  managed. 

I  have  been  especially  well  pleased  with  what  I  have 
learned  of  the  Argentine  cedulas.  Their  chief  unfavor- 
able feature  is  that  they  arc  payable  —  both  as  to 
principal  and  interest  —  in  paper  money.    But  so  far, 


352  THE   FUTURE  OF   SOUTH  AMERICA 

Argentine  currency  has  not  depreciated  —  practically 
the  only  exception  among  the  many  which  have.  In 
spite  of  the  objections  named  above,  I  believe  that  we 
are  justified  in  considering  seriously  these  cedulas  and 
other  South  American  investments  at  the  present  time. 
As  a  matter  of  fact,  I  believe  that  often  the  investment 
opportunities  of  Latin  America  perhaps  exceed  the 
trade  opportunities,  although  in  the  long  run  they  must 
go  hand  in  hand. 

Outside  of  the  securities  above  mentioned,  and  the 
opportunities  for  loaning  money  on  mortgages,  I  have 
been  especially  impressed  with  the  possible  real  estate 
speculations.  Similar  conditions  exist  in  parts  of  South 
America  to  buy  land  at  very  low  prices,  as  existed  in 
our  Central  West  fifty  years  ago.  We  know  that  land 
in  Minnesota,  Iowa,' Kansas,  and  Nebraska,  which  now 
sells  at  one  hundred  dollars  an  acre,  could  be  purchased 
fifty  years  ago  for  five  dollars  an  acre  or  even  less. 

The  farmers  of  our  country  have  not  made  their 
money  by  farming,  but  rather  through  the  unearned  in- 
crement. We  hear  much  about  the  wealth  of  farmers, 
but  statistics  show  that  there  are  more  mortgages  in 
Iowa  to-day,  or  in  almost  any  other  State,  than  ever 
before.  The  difference  is  that  forty  years  ago  the  Iowa 
farmer  valued  his  land  at  fifteen  dollars  an  acre  and  had 
it  mortgaged  for  twelve  and  a  half  dollars ;  while  now  he 
values  it  at  one  hundred  dollars  an  acre  and  has  it 
mortgaged  for  perhaps  twenty-five  dollars  per  acre. 
Forty  years  ago  he  considered  himself  poor,  and  to-day 
he  considers  himself  rich,  but  were  he  obliged  to  keep 
books,  his  direct  farming  operations  would  probably 
show  a  loss. 

There  is  no  doubt  that  history  will  repeat  itself  in 


SOUTH  AMERICAN  INVESTMENTS  353 

South  America,  especially  in  Argentina,  southern  Brazil, 
Uruguay,  and  Paraguay.  Here  lands  fully  as  good  as 
any  land  in  the  United  States  can  be  purchased  from 
thirty  cents  to  sLx  dollars  per  acre,  according  to  the  dis- 
tance from  a  navigable  river  or  a  railroad.  Of  course, 
a  man  needs  to  be  located  on  the  spot  to  take  advan- 
tage of  such  an  investment,  and  he  must  be  willing  to 
suffer  the  same  hardships  as  the  pioneers  of  our  west- 
ern country  suffered  when  they  first  crossed  the  Mis- 
sissippi. But  the  opportunity  to  make  great  fortunes 
exists  for  any  one  willing  to  go  down  there  and  live  and 
become  a  factor  in  the  community. 

A  man  with  money  would  probably  want  to  buy  pro- 
ductive land.  He  could  purchase  a  large  tract  and 
would  not  feel  it  necessary  to  suffer  the  hardships  of  a 
pioneer.  Then  in  the  majority  of  cases  the  interests  and 
ta.\'es  on  unproductive  land  exceed  the  natural  increase 
in  value.  Hence  a  man  with  money  should  go  to  south- 
ern Cordova  in  Argentina,  or  some  of  the  territory  about 
there,  and  purchase  a  producing  ranch.  Several  of  these 
ranches  of  many  thousands  of  acres  are  now  for  sale  at 
about  twenty  dollars  an  acre,  and  some  of  them  have 
several  thousands  of  acres  in  alfalfa.  Such  land  will 
pay  interest  and  taxes  from  the  first,  and  at  the  same 
time  gradually  increase  in  value. 

There  ha,s  been  little  suburban  (lev(>lopmont  as  yet 
in  South  America,  and  splendid  opportunities  exist  to 
la}'  out  suburbs  beyond  growing  cities  and  to  build 
residences  for  sale.  In  some  cities  there  are  wonder- 
ful opportunities  for  buying  inside  city  property  which 
is  now  rented  for  stores  and  offices.  Were  I  to  buy  such 
property,  I  would  go  into  the  very  heart  of  the  city. 
At  present,  there  are  l)ut  few  buildings  over  three  or 


354  THE   FUTURE   OF  SOUTH  AMERICA 

four  stories  high  in  South  America,  but  the  time  is  soon 
coming  when  in  the  center  of  these  cities  high  office 
buildings  will  be  constructed.  This  will  make  the  land 
intensely  valuable.  Therefore  I  believe  that  the  great- 
est profit  is  either  in  the  most  expensive  office-building 
property  in  the  heart  of  the  city,  or  else  in  the  most 
expensive  residential  section. 

Buyers  of  city  real  estate  should  always  purchase  on 
the  most  expensive  residential  street  and  on  the  end  of 
this  street  which  is  nearest  to  the  business  section. 
Statistics  show  that  the  best  of  the  business  section 
gradually  creeps  up  the  best  residential  street.  In 
nine  cases  out  of  ten,  the  new  and  growing  best  busi- 
ness section  of  every  city  to-day  is  creeping  up  the 
avenue  which  was  the  best  residential  section  twenty- 
five  years  ago.  Hence  all  over  the  world  the  best  op- 
portunities in  real  estate  investment  exist  near  the 
junction  of  the  best  business  and  the  best  residential 
section,  where  the  land  is  too  valuable  for  residential 
purposes  and  not  yet  valuable  enough  for  business 
purposes. 

Of  the  opportunities  in  city  real  estate  in  South 
America  I  am  convinced,  and  to  illustrate  further  this 
problem,  I  quote  an  interview  with  a  business  man  in 
Brazil.    He  said: 

"You  North  Americans  are  foolish  in  waiting  until 
cities  are  rebuilt  down  here  before  buying  property. 
The  greatest  opportunities  exist  in  Latin  America  to- 
day for  making  money  in  real  estate.  Some  of  our 
cities  like  Buenos  Aires,  Sao  Paulo,  and  Rio  de  Janeiro 
are  already  rebuilt.  Land  which  sold  in  Rio  for  one 
hundred  dollars  per  front  foot  only  in  1905,  now  sells 
for  one  thousand  dollars  per  front  foot.     Other  cities, 


SOUTH  AMERICAN   IXMilSTMENTS  355 

like  Bahia,  are  now  in  the  process  of  rebuilding.  Here 
land  has  risen  considerabl}',  but  not  nearly  as  much 
as  it  will. 

"The  great  opportunities  to-day  for  buying  real 
estate  are  in  cities  like  Para  and  others  which  I  might 
mention.  These  cities  are  destined  to  grow  and  will 
surely  become  important.  Land,  however,  can  now  be 
purchased  verj'  cheaply  in  such  cities.  Land  and  build- 
ings in  the  center  of  these  cities,  which  are  sure  to  in- 
crease in  value,  can  be  purchased  to  net  from  twelve 
to  fifteen  per  cent.  I  have  made  it  a  principle  to  buy 
only  productive  real  estate,  but  to  l)uy  in  places  which 
have  not  yet  constructed  sewer  systems  nor  freed  them- 
selves of  mosquitoes.  As  all  of  our  cities  are  sure  to 
do  this  some  day,  the  great  money-making  opportuni- 
ties are  where  it  has  not  yet  been  done. 

"Yet  you  North  Americans  will  buy  property  only 
in  cities  which  have  been  cleaned  up  and  beautified. 
Then  you  are  ol^ligcd  always  to  pay  high  prices  and 
get  stuck  to  boot." 

There  is  one  thing,  however,  which  we  United  States 
citizens  must  do  before  we  can  succeed  like  the  Eng- 
Ush  in  either  investing  or  trading.  We  must  get  the 
respect  of  these  people  for  our  government.  We  must 
have  them  learn  that  United  States  citizens  and  prop- 
erty must  be  protected,  and  that  our  citizens  must 
have  the  same  justice  as  Englishmen  enjoy.  If  we  are 
imwiUing  to  secure  such  respect  by  the  exhibition  of 
force,  then  we  should  work  for  some  international  co- 
operative method  which  will  accomplish  the  same  end. 
The  poor  land-titles  in  South  America  could  be  readily 
overcome  if  the  different  nations  would  cooperate  in 
the  matter.    One  thing  which  has  impressed  me  most 


356  THE  FUTURE   OF  SOUTH  AMERICA 

in  South  America  has  been  the  lack  of  respect  which 
the  masses  have  for  us  and  our  government.  We  are 
looked  upon  as  a  weak,  bluffing  nation  —  afraid  to 
fight,  and  unwilling  even  to  spend  money  to  secure 
justice  for  our  citizens  and  our  property.  When  this 
condition  is  changed,  South  American  investments  can 
more  heartily  be  recommended. 

The  attitude  of  South  Americans  toward  us  and  our 
government  is  well  illustrated  by  the  following  con- 
versation with  one  of  my  friends  in  Brazil: 

"The  greatest  handicap  investors  and  manufac- 
turers of  the  United  States  have  here  in  South  America 
is  the  fact  that  our  people  have  no  confidence  in  your 
government  at  Washington.  I  am  not  criticizing  your 
President,  for  I  think  he  has  done  much  to  bring  about 
a  more  friendly  feeling  between  the  Americas.  What 
queers  you  among  our  people  is  their  idea  that  you 
'  Americans '  are  great  bluffers.  You  talk  big,  and  fight 
with  your  mouth  and  pen,  but  never  go  any  farther. 
Your  government  sends  'notes'  to  other  governments, 
but  you  never  dare  to  send  a  battleship. 

''Our  people  are  like  children.  If  you  continually 
threaten  a  child  and  argue  with  him,  but  go  no  farther, 
you  will  soon  lose  the  respect  of  that  child.  This  is 
the  way  that  you  have  lost  the  respect  of  the  Latin- 
American  countries.  This  is  why  you  cannot  invest 
money  here  or  extend  credits.  Our  people  are  afraid 
to  cheat  an  Englishman  or  a  German,  but  they  have 
no  such  fear  with  you  'Americans.'  They  know  that 
your  government  will  not  back  you  up  to  secure  justice. 
Either  see  that  your  government  adopts  the  big-stick 
policy  used  by  the  English,  or  else  have  it  work  for  the 
organization  of  some  sort  of  an  inter-nation  which  shall 


SOUTH   AMERICAN   INVESTMENTS  357 

supervise  and  protect  persons  of  other  nations,  their 
ships,  and  their  investments  when  outside  the  domains 
of  their  fatherland." 

I  close  these  rarabhng  chapters  on  the  future  of 
South  America  with  this  last  suggestion,  as  it  is  worthy 
of  the  most  careful  consideration.  When  we  realize 
that  conflicts  between  nations  to-day  are  largely  due 
to  the  results  of  foreign-trade  complications,  we  wonder 
if  permanent  peace  can  ever  come  until  such  competi- 
tion for  foreign  markets  is  placed  under  joint  control 
and  on  equal  terms  for  all  great  nations.  This  would 
necessitate  the  use  of  an  inter-nation  trade  flag  and  a 
certain  international  organization  for  shipping,  bank- 
ing, and  some  of  the  other  features  of  foreign  trade. 
Such  a  plan,  however,  would  not  call  for  any  political 
union  of  the  nations,  nor  bring  about  other  complica- 
tions which  are  evident  in  most  international  plans. 
Furthermore,  such  a  move  would  be  toward  the  elimi- 
nation of  the  causes  of  war  and  not  an  attempt  to  en- 
force peace  without  the  removal  of  the  underljdng 
causes.  Certainly  statistics  suggest  that  world  peace 
is  coming  ultimately  through  economic  channels  rather 
than  through  judicial  and  arbitral,  as  most  people 
think  will  be  the  case. 

But  one  closing  word  on  the  Future  of  South  America. 
The  great  need  of  all  Latin  America  is  for  a  strong  and 
industrious  middle  class.  Place  five  million  farmers  in 
these  countries,  and  the  future  of  them  all  is  assured. 
But  until  there  is  a  stronger  middle  class,  the  govern- 
ments will  continue  weak,  the  banks  will  remain  poor, 
the  lands  undeveloped,  the  minerals  untouched,  the 
water  powers  unharnessed,  and  the  future  of  South 
America  will  diiTer  little  from  the  past. 


STATISTICS 


CUBA 

Area 45,883  Sq.  Miles 

Approximate  population     . 2,300,000 


Buys  from 

United  States  .    .     $53,000,000 


United  Kingdom . 

Spain 

Germany  .    .    .    , 

France  

Other  countries   . 

Total     .    .    .    . 


15,000,000 
9,000,000 
8,000,000 
6,000,000 

19,000,000 


$110,000,000 


Consisting 

Cereals  .... 
Cotton  goods  .  . 
Meat  products  . 
Machinery  .  .  . 
Iron  and  steel  .  . 
Garden  products . 
Leather  goods 
Other  imports 


of 

$16,000,000 

12,000,000 

12,000,000 

11,000,000 

6,800,000 

5,500,000 

5,500,000 

41,200,000 


Total 


$110,000,000 


Sells  to 


United  States  . 
United  Kingdom 
Germany  .    .    . 
France  .... 
Other  countries 


Total 


$143,000,000 

11,290,000 

5,600,000 

2,400,000 

7,710,000 


$170,000,000 


Consisting  of 

Sugar $120,000,000 

Tobacco    ....       35,000,000 

Fruits 5,000,000 

Woods  and  min- 
erals           6,500,000 

Other  exports  .    .         3,500,000 


Total 


$170,000,000 


Approximate  exports $170,000,000 

Approximate  imports 110,000,000 

From  the  United  States 53,000,000 


STATISTICS 


359 


PANAMA 

Area 32,800  Sq.  Miles 

Approximate  population 419,029 


Buys  from 


United  States 
United  Kingdom 
Germany    .    .    . 
France    .... 
Other  countries. 


S4,6o0,000 

2,080,000 

820,000 

220,000 

2,230,000 


Total $10,000,000 


Consisting  of 


Vegetable  jiroducts 
Animal  products  . 
Textiles  and  manu- 
factures .... 
Mineral  products  . 
Chemicals  and  drugs 

Liquors 

Machinery      .    .    . 
Other  imports    .    . 


500,000 
500,000 

500,000 
900,000 
410,000 
390,000 
190,000 
550,000 


Total $10,000,000 


Sells  to 
United  States    .    .     $2,800,000 


Total $2,800,000 


Consisting  of 

Raluta     . 

Bananas 

Cocoa 

Cocoanuts  .    .    .  \     $2,800,000 

Copper 

Panama  hats 

Other  exports 

(Panama    exports    to    other 
countries  are  unimportant.) 


Approximate  exports $3,000,000 

Api)roximatc  imj)orts 10,000,000 

From  United  States 4,650,000 


360 


THE  FUTURE  OF  SOUTH  AMERICA 


VENEZUELA 

Area 393,976  Sq.  Miles 

Approximate  population 2,685,606 


Buys  from 


United  States 
Great  Britain 
Germany  .  . 
France  .  .  . 
Netherlands  . 
Other  countries 


$6,800,000 
4,200,000 
3,000,000 
2,600,000 
1,600,000 
1,800,000 


Total $20,000,000 

Consisting  of 

Cotton  goods     .    .  $5,000,000 

Machinery     .    .    .  2,000,000 

Flour 1,000,000 

Rice    ......  600,000 

Drugs  and  medicines  600,000 

Butter 400,000 

Lard 400,000 

Paper        (printing 

and  other)  .    .    .  200,000 

Other  imports    .    .  9,800,000 


Total $20,000,000 


Sells  to 


United  States 
France  .  .  . 
Germany  .  . 
Great  Britain 
Other  countries 


$10,000,000 
6,800,000 
3,900,000 
2,000,000 
2,300,000 


Total $25,000,000 

Consisting  of 

Coffee $15,000,000 

Rubber 2,000,000 

Cacao 2,000,000 

Hides 1,500,000 

Other  exports    .    .  4,500,000 


Total $25,000,000 


Approximate  exports $25,000,000 

Approximate  imports 20,000,000 

From  the  United  States      6,800,000 


STATISTICS 


361 


COLOMBIA 

Area 438,436  Sq.  Miles 

Approximate  population 5,032,00 


Buys  from 


United  States  . 
Great  Britain  . 
Germany  .  .  . 
France  .... 
Other  countries . 


$8,000,000 
8,000,000 
4,000,000 
2,000,000 
6,000,000 


Total $28,000,000 

Consisting  of 

Textiles $10,000,000 

Foodstuffs  ....       3,000,000 

Metals 3,000,000 

Machinery  .  .  .  2,000,000 
Drugs  and  medicines  1 ,000,000 
Other  imports    .    .       9,000,000 


Total $28,000,000 


Sells  to 

United  States 
Great  Britain 
Germany  .  . 
France  .  .  . 
Other  countries 


$16,000,000 

4,000,000 

2,000,000 

1,000,000 

11,000,000 


Total $34,000,000 

Consisting  of 

Coffee $17,000,000 

Coal 7,000,000 

Hides 3,000,000 

Bananas      ....  2,000,000 

Panama  hats      .    .  1,000,000 

Other  exports    .    .  4,000,000 


Total $34,000,000 


Approximate  exports $34,000,000 

Approximate  imports 28,000,000 

From  United  States 8,000,000 


362 


THE  FUTURE  OF  SOUTH  AMERICA 


ECUADOR 

Area 116,000  Sq.  Miles 

Approximate  population 1,500,000 


Buys  from 


United  States  . 
Great  Britain  . 
Germany  .  .  . 
France  .  .  .  . 
Other  countries 


$3,000,000 
3,000,000 
2,000,000 
1,000,000 
1,000,000 


Total $10,000,000 


Consisting  of 

Textiles $4,000,000 

Foodstuffs  ....       2,000,000 
Other  imports   .    .       4,000,000 


Total $10,000,000 


Sells  to 


United  States 
France  .  .  . 
Great  Britain 
Germany  .  . 
Other  countries 


$4,000,000 
4,000,000 
2,000,000 
1,500,000 
1,500,000 


Total $13,000,000 


Consisting  of 


Cocoa  beans  . 
Rubber   .    .    . 

Coffee     .    .    . 
Ivory  nuts 
Panama  hats 


$9,000,000 

900,000 

700,000 

1,000,000 

1,400,000 


Total $13,000,000 


Approximate  exports $13,000,000 

Approximate  imports 10,000,000 

From  United  States 3,000,000 


STATISTICS 


363 


PERU 

Area 679,600  Sq.  Miles 

Approximate  population 4,500,000 


Buys  from 


Great  Britain 
United  States 
Germany  .  . 
France  .  .  . 
Other  comitries 


$7,000,000 
6,000,000 
5,000.000 
2,000,000 
5,000,000 


Total $25,000,000 


Consisting  of 


Metals  and  manu 

factures 
Cottons  . 
Foodstuffs 
Drj-  goods 
Woolens 
Silks  and  linens 
Other  imports 


$5,000,000 
4,000,000 
3,000,000 
2,000,000 
2,000,000 
1,000,000 
8,000,000 


Total $25,000,000 


Sells  to 


Great  Britain 
United  States 
Germany  .  . 
France  .  .  . 
Other  countries 


$12,000,000 

10,000,000 

3,000,000 

2,000,000 

10,000,000 


Total $37,000,000 

Consisting  of 

Copper    and    min- 
erals      $10,000,000 

Sugar 7,000,000 

Cotton 5,000,000 

Hats 2,000,000 

Wool 2,000,000 

Guano 1,000,000 

Other  exports    .    .  10,000,000 


Total $37,000,000 


Approximate  exports $37,000,000 

Approximate  imports 25,000,000 

From  United  States 6,000,000 


364 


THE  FUTURE  OF  SOUTH  AMERICA 


BOLIVIA 

Area 708,195  Sq.  Miles  , 

Approximate  population 2,200,000 


Buys  from 


Great  Britain 
Germany    .    . 
United  States 
South  America 
Other  countries 


14,900,000 
4,000,000 
3,900,000 
6,700,000 
3,500,000 


Total $23,000,000 

Consisting  of 

Manufactures    .    .     $9,000,000 

Food 3,000,000 

Other  imports   .    .     11,000,000 


Sells  to 

Great  Britain 
Germany  .  . 
France  .  .  . 
United  States 
Other  countries 


$26,000,000 

4,000,000 

2,000,000 

150,000 

4,350,000 


Total $36,500,000 

Consisting  of 

Tin      $16,000,000 

Rubber 4,000,000 

Foodstuffs  ....  3,750,000 

Other  exports    .    .  12,750,000 


Total $23,000,000       Total $36,500,000 

Approximate  exports $36,500,000 

Approximate  imports 23,000,000 

From  United  States 3,900,000 


STATISTICS 


365 


CHILE 

Area 291,500  Sq.  Miles 

Approximate  population 3,500,000 


Buys  from 

Great  Britain  .    .  $39,000,000 

Germany  ....  33,000,000 

United  States  .    .  17,000,000 

Other  countries  .  31,000,000 


Total 


$120,000,000 


Consisting  of 


Cotton  goods  . 
Iron  and  steel  . 

Coal 

Machinerj'    .    . 
Woolen  goods 
Other  imports  . 

Total     .    .    . 


$14,000,000 
13,000,000 
18,000,000 
16,000,000 
8,000,000 
51,000,000 


$120,000,000 


Sells  to 

Great  Britain  .  . 
Germany  .... 
United  States  .  . 
Other  countries  . 


$55,000,000 
28,000,000 
25,000,000 
32,000,000 


Total 


$140,000,000 


Consisting  of 

Soda  nitrate     .    .  $100,000,000 
Copper  and  other 
minerals   .    .    . 
minimal  products. 
Vegetable  products 
Other  exports  .    . 


Total 


23,000,000 
7,000,000 
7,000,000 
3,000,000 

$140,000,000 


Approximate  exports $140,000,000 

Approximate  imports 120,000,000 

From  United  States 17,000,000 


366 


THE  FUTURE  OF  SOUTH  AMERICA 


ARGENTINA* 

Area 1,139,979  Sq.  Milea 

Approximate  population 7,000,000 


Buys  from 

Great  Britain  .    .  $115,000,000 

Germany  ....  62,000,000 

United  States  .    .  57,000,000 

Francd 36,000,000 

Other  countries  .  138,700,000 


Total 


$408,700,000 


Consisting  of 

Iron  and  steel  .    .  $40,000,000 

Cotton  goods  .    .  35,000,000 

Coal 25,000,000 

Railway  material  15,000,000 

Automobiles     .    .  5,000,000 

Other  imports     .  288,700,000 


Total 


$408,700,000 


Sells  to 

Great  Britain  .    .  $117,000,000 

Germany  ....  52,000,000 

France 35,000,000 

United  States  .    .  31,000,000 

Other  countries  .  234,000,000 


Total 


$469,000,000 


Consisting  of 

Wheat $94,000,000 

Wool 56,000,000 

Hides  and  skins  .  40,000,000 

Frozen  beef      .    .  35,000,000 

Flax 33,000,000 

Corn 21,000,000 

Other  exports  .    .  190,000,000 


Total 


$469,000,000 


Approximate  exports $469,000,000 

Approximate  imports 408,700,000 

From  the  United  States 57,000,000 

*  For  complete  details  of  what  Argentine  buys  see  the  final 
pages  of  this  book. 


STATISTICS 


367 


PARAGUAY 

Area 171,815  Sq.  Miles 

Approximate  population 800,000 


Buys  from 

Germany    ....  $1,500,000 

Great  Britain     .    .  1,300,000 

United  States    .    .  300,000 

Other  countries.    .  4,400,000 


Total 


>7,500,000 


Consisting  of 

TextUes $1,500,000 

Food 1,000,000 

Hardware  ....  900,000 

Other  imports    .    .  4,100,000 


Total $7,500,000 


Sells  to 


Argentina  .  .  . 
Germany  .  .  . 
Other  countries . 


$3,400,000 
1,000,000 
1,150,000 


Total $5,550,000 

Consisting  of 

Fruits $1,200,000 

Hides 1,000,000 

Woods 800,000 

Other  exports    .    .  2,550,000 


Total $5,550,000 


Approximate  exports $5,550,000 

Approximate  imports 7,500,000 

From  the  United  States 300,000 


368 


THE  FUTURE  OF  SOUTH  AMERICA 


URUGUAY 

Area 72,210  Sq.  Miles 

Approximate  population 1,100,000 


Buys  from 

Great  Britain  .  .  $13,000,000 
Germany  ....  8,000,000 
United  States  .  .  6,000,000 
Other  countries.    .     23,000,000 


Total $50,000,000 


Consisting  of 


Food  products 
Textiles  .  .  . 
Iron  and  steel 
Lumber  .  .  . 
Coal  and  oils 
Drinks  .  .  . 
Chemicals  .  . 
Other  imports 


$8,000,000 
8,000,000 
4,500,000 
3,000,000 
4,000,000 
2,000,000 
1,000,000 

19,500,000 


Total $50,000,000 


Sells  to 


France  .  .  . 
Germany  .  . 
Great  Britain 
Argentina  .  . 
United  States 
Brazil      .    .    . 


Other  countries 


$9,000,000 
8,000,000 
7,000,000 
5,000,000 
3,000,000 
3,000,000 

30,000,000 


Total $65,000,000 

Consisting  of 

Wool $27,000,000 

Hides 9,000,000 

Meats 10,000,000 

Farm  products  .    .  2,000,000 

Fats 2,000,000 

Animals      ....  1,000,000 

Other  exports    .    .  14,000,000 


Total $65,000,000 


Approximate  exports $65,000,000 

Approximate  imports 50,000,000 

From  the  United  States 6,000,000 


STATISTICS 


3C9 


BRAZIL 

Area 3,218,130  Sq.  Miles 

Approximate  population 20,000,000 


Buys  from 


Great  Britain  . 
Germany  .  .  . 
United  States  . 
France  .... 
Other  countries 


Total 


$76,000,000 
53,000,000 
48,000,000 
28,000,000 

121,000,000 


$326,000,000 


Consisting 

Iron  and  steel  .  . 
Flour  and  wheat  . 
Cotton  goods  .  . 
Cars  and  carriages 
Electrical  machin- 


ery    .    .    .    . 
Leather  goods 
Other  imports 

Total  .  .  , 


of 

$57,000,000 
26,000,000 
25,000,000 
15,000,000 

6,000,000 

5,000,000 

192,000,000 


$326,000,000 


Sells  to 

United  States  .    .  $142,000,000 

Germany  ....  52,000,000 

Great  Britain  .    .  43,000,000 

France 35,000,000 

Austria-Hungary  18,000,000 

Argentina     .    .    .  13,500,000 

Other  countries   .  59,000,000 


Total 


$362,500,000 


Consisting  of 

CofTee $226,000,000 

Rubber 76,000,000 

Hides  and  skins  .  13,000,000 

Yerbamat6     .    .  10,000,000 

Cacao 7,000,000 

Tobacco    ....  7,000,000 

Other  exports  .    .  23,500,000 


Total 


$362,500,000 


Approximate  exports $362,500,000 

Approximate  imports 320,000,000 

From  the  United  States 48,000,000 


370  THE  FUTURE  OF  SOUTH  AMERICA 

THE   ARGENTINE 
FINANCIAL  AND  ECONOMIC   GROWTH,    1904-1913 


1913 

1904 

Per  cent 
Increase 

Population 

7,704,396 

5,190,725 

48 

National  debt 

$525,493,137 

$416,020,801 

26 

National    currency    in 

U.  S.  gold  equivalent  . 

349,448,817 

173,047,569 

101 

Gold  in  conversion  fund 

253,906,836 

53,591,186 

373 

National  revenues    .    .    . 

148,266,329 

80,142,185 

85 

National  expenditures  ^  . 

171,246,935 

82,753,041 

106 

Import  duties 

84,540,316 

38,874,436 

117 

Per  cent  import  duties  to 

national  revenues     .    . 

48.2 

46.9 

Per  cent  import  duties  to 

value  of  imports  .    .    . 

20.8 

21.5 

Value  of  exports  .... 

$466,436,836 

$254,832,764 

83 

Value  of  imports      .    .    . 

406,484,585 

180,694,068 

124 

Value    of    total    foreign 

commerce 

872,921,421 

435,626,832 

100 

Exports  to  United  States 

22,086,622 

9,854,399 

124 

Imports     from      United 

States     

59,843,093 

23,909,948 

153 

Total  foreign   commerce 

with  United  States  .    . 

81,929,715 

33,464,347 

144 

Agricultural  exports    .    . 

290,632,365 

145,021,931 

100 

Per  cent  of  total  .    .    . 

62.2 

56.8 

Exports  of  animal  industry 

$159,947,388 

$101,645,252 

57 

Per  cent  of  total  .    .    . 

34.3 

39.9 

Railroads: 

Mileage 

20,660 

12,000 

72 

Capitalization  .... 

$1,310,882,563 

$587,520,972 

123 

Gross  earnings      .    .    . 

135,832,416 

60,159,418 

125 

Includes  expenditures  for  public  works. 


STATISTICS  371 


DETAILED    STATEMENT    OF    ARGENTINA'S    IM- 
PORTS  FOR  AN   AVERAGE   YEAR 

$  gold 

1  Coal 28,323,946 

United  Kingdom 98.3% 

Other  countries 1.7 

2  Colored  wove  prints 12,875,730 

United  Kingdom 40.0% 

Italy 38.5 

Germany      8.9 

Belgium 7.3 

France      2.6 

Spain 2.0 

Other  countries 0.7 

3  Sack  cloth      12,154,046 

British  Possessions 52.3% 

United  Kingdom 43.0 

Other  countries 4.7 

4  Naphtha,  impure 11,931,840 

United  States 85.6% 

Mexico , 11.1 

Other  countries 3.3 

5  Pitch  pine 9,128,164 

United  States 98.9% 

Other  countries 1.1 

6  Portland  cement 7,936,071 

Belgium 52.2% 

United  Kingdom 15.0 

France      13.2 

Other  countries 19.6 

7  Woolen  cloths 7,092,134 

United  Kingdom 63.2% 

Germany      15.9 

France      12.8 

Italy 4.1 

Belgium 2.7 

Other  countries 1.3 


372  THE  FUTURE  OF  SOUTH  AMERICA 

Sgold 

8  Galvanized  iron 6,683,860 

United  Kingdom 84.4% 

Germany      6.5 

United  States      4.7 

Belgium 2.7 

Other  countries 1.7 

9  Pig  and  sheet  iron 6,378,999 

Germany 47.4% 

Belgium 34.4 

United  Kingdom 9.7 

United  States      7.1 

Other  countries 1.4 

10  Steel  rails 6,263,680 

United  Kingdom 31.8% 

Germany      29.6 

United  States      26.1 

Other  countries 12.5 

11  Machinery  (various  kinds) 6,210,438 

Germany      46.4% 

United  Kingdom 21.8 

United  States      13.5 

Other  Countries 18.3 

12  Automobiles 5,232,604 

France 36.8% 

United  States      19.3 

Germany      16.3 

Italy 9.5 

Other  countries 18.1 

13  Yerba  mat6 5,215,289 

Brazil 100.0% 

14  Railway  material 5,041,415 

United  Kingdom 72.1% 

Other  countries 27.9 

15  Railway  wagons 5,038,666 

United  Kingdom 47.8% 

United  States      14.1 

Germany      13.8 

Other  countries 24.3 


STATISTICS  373 

Sgold 

16  Wire  and  cables  for  electric  purposes 4,945,631 

Germany      46.6S1) 

United  Kingdom 40.9 

Other  countries 12.5 

17  Bleached  cotton  goods 4,841,056 

United  Kingdom 78.3% 

Italy 12.7 

Germany      3.0 

Belgium 2.2 

France 2.1 

Other  countries 1-7 

IS  OUve  oil 4,304,094 

Italy 62.0% 

Spain 31.3 

Other  countries 6.7 

19  \^'rought  iron 4,234,929 

United  Kingdom 58.0% 

Germany      21.4 

Belgium 12.6 

Other  countries 8.0 

20  Iron  columns  and  beams 4,161,520 

Germany      54.1% 

France 22.0 

Other  countries 23.9 

21  Cotton  prints 4,119,377 

United  Kingdom 67.5% 

Italy 13.1 

Germany      10.5 

Other  countries 8.9 

22  Sugar,  refined" 57,981,385 

Austria-Hungary 57.6% 

Germany      31.3 

France 10.4 

Other  countries 0.7 

23  Woolen  and  mixed  goods 549,973 

United  Kingdom 67.9% 

Germany      16.0 

Italy 8.5 

France 4.1 

Other  countries 3.5 


374  THE  FUTURE  OF  SOUTH  AMERICA 

$gold 

24  Parcel  post 3,612,669 

United  Kingdom 31.9% 

France      27.2 

Germany      20.1 

Italy 17.6 

Other  countries 3.2 

25  Ordinary  wine  (in  casks) 3,520,546 

Spain 42.4% 

Italy 37.0 

France 20.0 

Other  countries 0.6 

26  Locomotives 3,486,324 

United  Kingdom 75.6% 

Other  countries 24.4 

27  Cleaned  rice 3,431,570 

Italy 50.0% 

Holland 25.3 

British  Possessions 11.0 

Spain 7.3 

Germany      4.8 

Other  countries 1.6 

28  Vermouth  (in  bottles)      3,363,600 

Italy 74.3% 

France      25.5 

Other  countries 0.2 

29  Spruce 2,964,094 

United  States 50.6% 

Canada 30.9 

Other  countries 18.5 

30  Silk  cloths 2,852,401 

France 56.8% 

Germany      12.8 

Italy 11.8 

United  Kingdom 11.7 

Other  countries 6.9 

31  Furniture 2,764,924 

United  States      25.1% 

Austria-Hungary 21.7 

United  Kingdom 15.3 

France 14.8 

Germany      14.0 

Other  countries 9.1 


STATISTICS  375 

S  gold 

32  Spare  parts  of  machinery 2,734,468 

United  States 29.1% 

Germany      25.5 

United  Kingdom 21.7 

Belgium 10.9 

Other  countries 12.8 

33  Spare  parts  of  carriages  and  automobiles     ....  2,654,635 

France 31.7% 

Germany      30.7 

United  Kingdom 20.6 

Other  countries 17.0   , 

34  Lubricating  oils 2,554,625 

United  States      56.8% 

United  Kingdom 24.5 

Russia 11.2 

Other  countries 7.5 

35  Material  for  sanitary  purposes 2,292,357 

United  Kingdom 86.5% 

Other  countries 13.5 

36  Tobacco  (other  than  Havana) 2,194,590 

Brazil 73.3% 

United  States 23.5 

Other  countries 3.2 

37  Galvanized  wire 2,125,538 

Germany      61.7% 

United  States 23.3 

United  Kingdom 11.0 

Other  countries 4.0 

38  Sheep  supplies 2,114,656 

United  Kingdom 92.7% 

United  States      5.0 

Other  countries 2.3 

39  Petroleum 2,046,900 

United  States 99.9% 

Other  countrias 0.1 

40  Galvanized  iron  pipes 2,024,902 

United  Kingdom 62.0% 

Germany      22.9 

United  States 12.0 

Other  countries 3.1 


376  THE  FUTURE  OF  SOUTH  AMERICA 

Sgold 

41  Cheese 2,018,016 

Italy 74.5% 

Switzerland      8.3 

Holland 7.6 

France      7.0 

Other  countries 2.6 

42  Patent  medicines      1,994,524 

France 56.1% 

•  Italy 14.3 

United  States 11.4 

Germany 7.3 

United  Kingdom 5.5 

Other  countries 5.4 

43  Cotton  socks 1,972,078 

Germany      , 80.0% 

France      14.0 

Other  countries 6.0 

44  Jewehy  (fine) 1,934,502 

Germany      44.4% 

France      33.6 

Other  countries 22.0 

45  Reapers 1,907,142 

AustraHa 46.9% 

United  States 34.7 

Canada 16.5 

Other  countries 1.9 

46  Sheet  glass 1,887,113 

Belgium 54.3% 

United  Kingdom 29.1 

Other  countries 16.6 

47  Paper  for  newspapers 1,844,962 

United  States 35.9% 

Germany      34.4 

Norway 14.5 

Sweden 13.6 

Other  countries 1.6 

48  Watches  (other  than  gold)      1,821,701 

Switzerland      41.8% 

Germany      27.7 

Italy 1.7 

Other  countries 28.8 


STATISTICS  377 

$  gold 

49  Coffee 1,774,255 

BrazU 98.0% 

Other  countries 2.0 

50  Cotton  and  silk  goods 1,682,660 

France 36.4% 

United  Kingdom 34.0 

Germany      15.6 

Italy 9.2 

Other  countries 4.8 

51  Spun  cotton,  unbleached 1,671,248 

Italy 43.0% 

United  Kingdom 19.1 

HoUand 14.0 

Belgium 12.5 

Other  countries 11.4 

52  Sisal  twine 1,668,611 


United  States 92.2 


Other  countries 7.8 

53  Iron  pipes  (other  than  galvanized) 1,597,608 

United  Kingdom 59.9% 

Germany      26.6 

United  States 8.2 

Other  countries 5.3 

54  Sugar,  unrefined 1,529,367 

Germany      99.9% 

Other  countries 1 

55  Cotton  lace 1,498,213 

United  Kingdom 37.5% 

Germany      35.1 

Switzerland      9.8 

France      8.4 

Italy 7.2 

Other  countries 2.0 

56  Hou.schold  utensils 1,477,148 

Germany      57.9% 

France      12.3 

United  Kingdom 8.9 

Sweden 5.6 

United  States 4.1 

Au.stria-IItingary 4.0 

Other  countries 7.2 


373  THE  FUTURE  OE  SOUTH  AMERICA 

Sgold 

57  Railway  cars 1,454,376 

United  Kingdom 89.7% 

Other  countries 10.3 

58  Threshing  machines 1,427,100 

United  States  .    . 63.1% 

United  Kingdom 33.4 

Other  countries 3.5 

59  Iron  and  steel  manufactures 1,413,010 

United  Kingdom 38.0% 

Germany      27.2 

United  States 14.1 

France 12.1 

Other  countries 8.6 

60  White  pine 1,406,879 

United  States      75.2% 

Canada 16.5 

Other  countries 8.3 

61  Wheels  and  axles      1,389,581 

United  Kingdom 73.1% 

United  States      17.5 

Other  countries 9.4 

62  Steel  sleepers 1,382,210 

United  Kingdom 43.7% 

Germany      29.3 

United  States      20.0 

Other  countries 7.0 

63  Cotton  goods 1,337,436 

Germany      46.5% 

France 29.3 

United  Kingdom 13.1 

Other  countries 11.1 

64  Bolts  and  nuts 1,331,724 

United  Kingdom 36.5% 

United  States 24.3 

Belgium 16.0 

Germany      14.4 

Other  countries 8.8 

65  Sand  (for  building  purposes) 1,313,904 

Uruguay 99.8% 

Other  countries 0.2 


STATISTICS  379 

Sgold 

66  Cotton  and  woolen  goods 1,313,904 

United  Ivingdom 42.0% 

Germany      26.8 

Belgium 11.8 

France 9.5 

Italy 8.1 

Other  countries 1.8 

67  Ploughs 1,296,922 

United  States      91.8% 

Other  countries 8.2 

68  Pianos 1,293,020 

Germany      79.9% 

France 5.6 

United  States 4.8 

United  Kingdom 4.2 

Other  countries 5.5 

69  Bags  of  sack  cloth 1,287,194 

United  Kingdom 72.8% 

British  Possessions 16.6 

Italy 6.0 

Other  countries 4.6 

70  Perfumery     1,283,783 

France 76.6% 

United  Kingdom 10.3 

Germany      6.5 

Other  countries 6.6 

71  Woolen  goods 1,258,790 

Germany      43.7% 

France      28.8 

United  Kingdom 20.0 

Other  countries 7.5 

72  Paper  for  printed  matter 1,256,255 

Germany      82.9% 

United  Kingdom 6.0 

Austria-Hungary 3.2 

Italy 2.0 

Other  countries 5.9 

73  Sardines 1,246,154 

Spain 64.2% 

Norway 21.0 

Other  countries 14.8 


380  THE  FUTURE  OF  SOUTH  AMERICA 

Igold 

74  Wax  candles 1,239,453 

Belgium 30.8% 

United  Kingdom 27.6 

Holland 21.6 

Germany      7.6 

Italy 7.6 

Other  countries 4.8 

75  Malt 1,231,832 

Austria-Hungary 91.3% 

Germany      8.4 

Other  countries 0.3 

76  Sewing  machines •    •    •   1,227,126 

United  States 59.2% 

Germany      20.0 

United  Kingdom 19.2 

Other  countries 1.6 

77  Tin  plate 1,218,248 

United  Kingdom 90.2% 

Other  countries 9.8 

78  Cigars  (other  than  Havana) 1,215,266 

Italy 70.6% 

Switzerland      16.9 

Holland 8.6 

Other  countries 3.9 

79  Printed  books 1,212,209 

Spain 40.6% 

Italy 26.6 

France 13.2 

United  Kingdom 8.8 

Germany      5.8 

Other  countries 5. 

80  Cotton  oil 1,183,076 

United  States 99.0% 

Other  countries 10 

81  Tartaric  acid 1,147,353 

Germany      37.8% 

Italy 36.1 

United  Kingdom 10.9 

France 10.2 

Other  countries 5.0 


STATISTICS  381 

$  gold 

82  Tea 1,128,846 

China 37.7% 

British  Possessions 31.4 

United  Kingdom 28. 7 

Other  countries 2.2 

83  D}Tiaraos  and  electric  motors 1,127,491 

Germany      45.1% 

United  Kingdom 41.4 

Other  countries 13.5 

84  Copper  manufactures 1,118,170 

Germany      35.9% 

United  Kingdom 30.3 

France 13.2 

Other  countries 20.6 

85  Unbleached  cotton  goods 1,102,564 

United  Ivingdom 73.5% 

Italy 21.9 

Other  countries 4.6 

86  Tramway  material       1,091,550 

Germany      56.1% 

United  Ivingdom 23.3 

Belgium 14.9 

Other  countries 5.7 

87  Boilers 1,087,556 

United  Ivingdom 86.7% 

Germany      7.6 

Belgium 1.8 

Other  countries 3.9 

88  Colored  cotton  yarn 1,043,997 

Holland 34.7% 

Italy 31.6 

Belgium 17.5 

Germany      8.6 

Other  countries 7.6 

89  Earthenware  tiles 1,028,435 

Unitwl  Kingdom 44.4% 

Germany      19.6 

Belgium 13.2 

Other  countries 22.8 


382  THE  FUTURE  OF  SOUTH  AMERICA 

$  gold 

90  Glassware 1,018,210 

Germany      41.5% 

Belgium 23.5 

France 22.7 

Other  countries 12.3 

91  Printed  pamphlets 1,017,155 

United  Kingdom 56.9% 

Germany      16.9 

Other  countries 26.2 

92  Linen  cloth 1,001,915 

United  Kingdom 51.1% 

Belgium 21.2 

Germany      11.22 

France 12.66 

Other  countries 3.82 

93  Colored  cotton  goods 1, 000^043 

United  Kingdom 42.3% 

Spain 15.6 

Germany      14.3 

France 12.9 

Italy 8.4 

Other  countries 6.5 

Total  $  gold 289,658,391 

Other  articles  under  $1,000,000  in  value  ....   131,694,151 

Grand  total  f  gold $421,352,542 


r^ 


INDEX 


INDEX 


Aconcagua  River,  1S8 
Africa,  27,  304,  314 
Agates,  276 
Agriculture,  Cuba,  29;    Porto 

Rico,  43;    Hayti  and  Santo 

Domingo,  51 ;  Venezuela,  100; 

Colombia,  115:  Ecuador,  121 ; 

Peru,  141,  157;  Bolivia,  163; 

Chile,    173,    185,    186,   201; 

Argentina,   230;    growth  of 

in  Argentina,  217-218,  251; 

Uruguay,  272,  276;    Brazil, 

297,  299;    possibihties  of  in 

So.  Am.,  2;   in  Bolivia,  164; 

implements  of,  125. 
Aigrettes,  102 
Alfalfa,  230,  258 
Algaroba,  231 
Alligator,    skins,    121;     pears, 

19{) 
Ahnonds,  201 
Alpaca,  137,  141 
Alves,     President    Rodriguez, 

311 
Amazon,    120,    133,    140,    147, 

21K),    291,    295,    290,    315, 

319 
Arnazonas,  326 
America,  Central.     Sec  Cen- 

TUAL    A.MKUICA 

American      Vanadium      Com- 
pany, 142 
Amethysts,  301 


Anachs,  Dept.  of,  156 

Ancud,  187 

Andes,  119,  123,  129,  133,  142, 
148,  157,  159,  161,  166,  167, 
175,  176,  182,  190,  196,  210, 
211,  217,  289,  290 

Antarctic,  current,  129;  winds, 
217 

Antilla,  17 

Antimony,  142 

Antofagasta,  2,  161,  172,  192, 
193,  194,  212,  343,  344 

Apiculture,  187 

Arao,  111 

Arauco,  200 

Area,  317 

Architecture,  Cuba,  10;  San 
Juan,  40;  Bogota,  116;  Are- 
quipa,  139 

Area  of,  Cuba,  11,  16;  West 
Indies,  37;  Santo  Domingo, 
48;  Hayti,  48;  Jamaica,  60; 
Barbados,  64;  Bahamas,  70; 
Panama,  73;  Venezuela,  98; 
Colombia,  114;  Ecuador, 
119;  Peru,  127;  Bohvia, 
160,  162;  Chile,  166;  Ar- 
gentina, 210;  Paraguay,  260; 
Uruguay,  270,  271;  Brazil, 
2SS 

Arequipa,  138,  146,  344;  d(- 
Hcrijjlion  of,  139-140;  archi- 
tecture of,  139;  climate  of, 
139-140;  manufactures  of, 
140,  145 


386 


INDEX 


Argentina,  3,  7,  162,  195,  201, 
209,  213,  245,  263,  264,  270, 
271,  273,  281,  286,  288,  303, 
318,  331,  343,  346,  347; 
greatness  of,  214;  necessity 
of  statistics  in  studying, 
214-215;  area,  216;  climate, 
217;  population,  217; 
growth  of  agriculture,  217- 
218;  cities  of,  —  Buenos 
Aires,  218-224;  La  Plata, 
224-225;  Bahia  Blanca,  225; 
Rosario,  225,  226;  Mendoza, 
226;  Santa  F6,  227;  land 
values,  227;  cedulas,  227; 
exports,  228;  natural  re- 
sources, 228-229;  cattle, 
230;  agricultural  products, 
230;  timber,  230-231;  min- 
erals, 231;  manufacturing, 
231;  railroads,  232;  neces- 
sity for  U.  S.  A.  investments, 
232;  waterways  and  steam- 
ships, 232-233;  necessity  of 
capital,  233-234;  character 
of  population,  234;  atti- 
tude toward  foreigners,  234; 
immigration,  235;  govern- 
ment, 236-238;  history, 
238-239;  credit  situation, 
239-241 ;  interview  with 
president  of,  241-259;  trade 
conditions  of,  242-243;  ne- 
cessity for  U.  S.  A.  invest- 
ments in,  244;  England's 
investments,  245;  German 
methods  in,  246;  U.  S.  A. 
policy  to  get  trade  in,  247- 
248 ;  money-making  possi- 
bihties  in,  248-249;  growth 
and  present  condition  of, 
249-252;  the  president  on 
immigration,  252;  park  sys- 
tems,   254;     characteristics 


of  population,  254-255;  great 
natural  wealth  must  be  real- 
ized by  U.  S.  A.  bankers, 
257-258;  an  "arrived"  coun- 
try, 259 

Arica,  161,  165-166,  168,  172, 
178,  344 

Arizona,  319 

Arrowroot,  70,  294 

Artigas,  273 

Ascatan,  200 

Asphalt,  25,  102,  111 

Assai,  315 

Asuncion,  228,  261 

Atacama  Desert,  195 

Austria,  160,  245,  256 

Austrian,  233,  256,  279 

Automobiles,  105,  132,  219, 
223,  228,  254 

Avenida  do  Rio  Branco,  312 

B 

Bahamas,  36,  37,  70;  area  of, 
70;  coraUine  formation  of, 
70;  contrasted  with  Florida, 
70;  exports  and  imports, 
71;  sponges,  turtles,  bas- 
kets, fruits,  71;  climate,  71; 
owned  by  England,  71; 
society  in,  71 

Bahia,  292,  303,  307,  308,  312, 
313,  332 

Bahia  Blanca,  3,  221,  225,  227 

Balata,  102 

Balboa,  74,  88 

Bahnaceda,  170 

Balsams,  261,  294 

Bananas,  26,  43,  51,  60,  93,  115 

Bank  of  North  America,  202, 
258,  332,  346 

Banks,  5,  184,  202,  247;  neces- 
sity for  U.  S.  A.  banks,  8;  of 
Havana,   20 


INDEX 


387 


Barbados,  the,  37,  71;  area  of, 
64;  population  of,  64;  loy 
alty  of  blacks  to  England,  64 
climate,  64;  a  health  resort 
64;  land  and  population,  65 
minerals,  65 ;  BridgetowTi 
65;  exports  and  imports,  66 
opportunities  for  U.  S.  A. 
citizens  in,  66;  economic  hab- 
its of  population,  65-66 

Barley,  230 

Baroda,  Rajah  of,  300 

Barragunda,  299 

Barros-Luco,  Senor  Don  Ra- 
mos, Pres.  of  Chile,  194,  195 

Basques,  281 

Beans,  Lima,  158,  164 

Bee,  ItaUan,  187;  hives,  187; 
culture,  232 

Beef,  frozen,  102,  273,  274, 
322;  extract,  273,  275 

Belem,  315 

Belgian,  53,  188,  233,  245,  256, 
279,  339 

Belgium,  148,  177,  195,  256 

Belgrano,  General,  239 

Bello  Horizonte,  299 

Bcncvides,  Pres.  Oscar  R., 
150,  151,  152,  155 

Berlin,  160,  222 

Bermudas,  37 

Bicycles,  184 

"Big  Stick,"  5,  247,  248 

Bilhnghurst,  133,  151 

Bismuth,  142,  231 

"Black  RepubUc,"  55 

Blankets,  231 

Blumenau,  322 

Bocas  del  Toro,  78,  79 

Bogota,  114,  117;  architecture 
of,  116;  culture  of,  116;  a 
distributing  point,  116-117 

bolclin  OJficitU  Rciumcn,  215 

Bolivar,  Simon,  114,  132,  160 


Bohvia,   6,   7,    165,    172,    174, 

239,  256,  257,  264,  345,  347: 
area  of,  160,  162;  physical 
characteristics,  160;  history 
of,  160-161;  unfortunate 
commercial  situation,  161; 
routes  of  entrance,  161 ; 
climate,  162;  La  Paz,  162; 
minerals  and  agricidtuie, 
163;  opportunities  for  trade, 
163;  possibilities  of  agi-i- 
culture  in,  164;  cities,  164; 
attractions  for  tourists,  164; 
statistics  of,  364 

Boliviano,  6,  7 

Bohvians,  204 

Bombay,  162 

BombiIJa,  263 

Bonds,    necessity    of    buying, 

346;   government,  347,  350; 

municipal,    347,    348,    350; 

state,  348,  350 
Boots  and  shoes,  125 
Borates,  142 

Borax,  142,  163,  200,  231 
Borracha,  295 
Boston,  1,  54,  76,  89,  203,  236, 

240,  246,  346 

Braden  Copper  Company,  198 
Braz,  Dr.  Wenceslao,  316 
Brazil,  97;  size  compared  with 
U.  S.  A.,  1;  coastline  of,  1; 
area  of,  3;  climate  of,  4; 
economic  future  of,  4;  121, 
141,  155,  156,  162,  195,  224, 
228,  245,  253,  2.56,  262,  264, 
270,  271,  272,  274,  276,  278, 
284,  337,  343,  346,  347,  348, 
349,  350,  353,  354,  35(5; 
size  of,  287-288;  pliysi- 
cal  characteristics,  288-289; 
waterways,  2S9-290;  re- 
sources of,  290;  popuhition 
of,  290-291;    climate,  291- 


388 


INDEX 


Brazil,  continued 

293;  forests,  294;  products, 
294-299;  mining,  299-301; 
stock-raising,  301 ;  manu- 
factures, 301-303;  harbors 
of,  303;  history  of,  304-305; 
government  of,  305-307; 
education,  307 ;  raikoads, 
307-309;  rivers,  309;  cities 
of,  309-316;  interview  with 
Dr.  Miiller,  316-334;  immi- 
gration, 318;  resom-ces  of, 
319-321;  future  of  industry, 
322-323;  tariffs,  324-327; 
price  of  land,  327-329;  ne- 
cessity for  capital  in,  329- 
332;  development  of  rela- 
tions between  U.  S.  A.  and, 
332-334 

Brazihans,  284 

Breakwaters,  Chile,  170 

Bridgetown,  65;  description 
of,  66 

Bridgeville,  142 

British  Guiana,  97 

British  in  So.  Am.,  37,  148, 
176,  179,  233,  256,  273,  279, 
280,  304.    See  also  English 

Brown,  Admiral,  239 

Buenos  Aires,  182,  214,  215, 
216,  228,  229,  232,  233,  239, 
241,  254,  261,  262,  267,  270, 
308,  343,  346,  348,  350, 
354;  size  of,  217;  history 
of,  217;  location  of,  218; 
docks,  219;  a  cleanly  city, 
219;  transportation,  219; 
automobiles  of,  219;  news- 
papers, 219;  social  factors, 
220;  hotels,  220;  a  cosmo- 
pohtan  city,  220;  parks, 
220;  commerce,  220-221; 
buildings,  221,  223;  the 
gayest   city   in   the   world, 


222-223;   horse  racing,  222; 

capitol   building,    224,    225, 

226,  227;   land  values,  227; 

state  of,  225 
Buffalo,  76 
Bull  fights,  135 
Butter,  102 
Buying,  art  of,  23 


Caballeros,  49 

Cabanas,  24 

Cables,  5,  172,  247,  333 

Cabot,  Sebastian,  238,  261 

Cacao,  25,  52,  102,  115,  123, 
141,  158,  297,  322,  327 

Cachendo,  138 

Cadiz,  10 

Cairo,  162 

Cahche,  176 

Cahfornia,  4,  142,  167,  173, 
179,  189,  216,  321;  com- 
pared with  Peru,  127-128 

CaUao,  93,  132, 146, 147;  harbor 
of,  130;  description  of,  130 

Calso,  176 

Camaguey,  17 

Canada,  66,  166,  167,  216,  252, 
283,  324 

Canadians,  109,  318 

Canal,  Panama,  appearance  of, 
72;  Gatun  Dam  and  lake, 
72;  locks,  72;  importance 
of,  73;  distances  saved  by, 
73;  histoiyof,  91;  101,  123, 
128,  146,  147,  155,  156,  211 

Canal  Zone,  74,  92 

Canaries,  38,  285 

Cano  Colorado,  102 

Canto,  El,  17 

Cape  Fro  ward,  210 

Cape  Haytien,  56 

Cape  Horn,  196,  209 


INDEX 


3S9 


Cape  St.  Roquo,  285 

Cape  To\\-n,  217 

Capital,  necessity  of  in  Cuba, 
34;  in  Peru,  159;  in  Chile, 
172,  174,  1S6,  201;  Euro- 
pean, in  Chile,  181;  neces- 
sity for  in  Chile,  207;  Chile's 
attitude  toward,  208;  neces- 
sary for  Argentina,  233-234, 
235,  239,  259:  protection  of, 
247;  Brazil,  329-332 

Caracas,  98,  99,  103,  104,  110 

Caras,  118 

Caribbean  Sea,  97,  98,  114 

Carib  Indians,  70 

Carlos  III,  24 

Carmelo,  278 

Camahuba,  294 

Camelians,  276 

Carupano,  102 

Casa  Blanca,  40,  278 

Castilloa,  29C 

Castro,  106 

Cattle,  2;  in  Cuba,  30;  can- 
ning in  Cuba,  30;  in  Panama 
77,  95;  Venezuela,  101,  102 
105;  Colombia,  115,  157 
Chile,  180,  187,  190,  196 
Argentina,  222, 225,228, 230 
252,  257;  Paraguay,  260 
Uniguay ,  272 ;  Brazil,  297, 30 1 

Caucho,  295 

Cedar,  25,  26,  52,  293 

Cedulas,  227,  228,  3.50-352; 
Bolivian,  351;  Argentine, 
351;   Chilean,  351 

Cement,  142 

Central  America,  296 

O-rcidM,  322 

Cerrcj  Cristobal,  183 

O^rro,  El,  267 

O;rro  de  Pa«co,  141,  146; 
mining  company,  142 

Charlca  V,  93 


Charlotte  Amalie,  37;  de- 
scription of,  68-69 

Checcacupe,  146 

Chemicals,  201 

Chicago,  204,  207,  226,  242, 
288,  318,  320,  333,  341,  346 

Chile,  2,  6,  7,  125,  135,  142, 
144,  161,  209,  212,  213,  224, 
234,  245,  254,  256,  264,  273, 
276,  318,  330,  331,  345,  346, 
347,  349;  the  northern  part 
of,  165;  shape  and  size,  166; 
physical  cliaracteristics,  160; 
climate,  167;  manufacturing 
a  future  industry,  167,  168; 
history,  169-171;  constitu- 
tion of,  169-170;  govern- 
ment, 171;  immigi'ation, 
172;  attitude  toward  foreign- 
ers, 172;  Antofagasta,  172- 
173;  opportunities  for  man- 
ufacturing, 173-174,  175; 
necessity  for  capital,  174; 
deficiencies  in  our  infonna- 
tion  about,  174-175;  ni- 
trates, 175-178;  Valpa- 
raiso, 178-180;  success  of 
Europeans  in  Chile,  180- 
182;  Santiago,  183;  atti- 
tude toward  U.  S.  A.  citi- 
zens, 184;  U.  S.  A.  handi- 
capped by  press,  184-185; 
relations  between  financial 
and  physical  conditions, 
18.5-186;  products,  186- 
188;  raib-oads,  188;  South- 
ern, 189-190;  opportunities 
for  manufacturers,  191 ;  in- 
vestments in,  191;  financial 
conditions,  193-194;  Presi- 
dent Barros-Luco,  194-195; 
j)n'sid('nt'K  description  of, 
195-197;  value  of  nitrates, 
197;     disadvantages   of    ni- 


390 


INDEX 


Chile,  continued 

trates,  198;  mining  in,  198- 
200;  agi'icultural  possibili- 
ties, 201;  capital  needed  in 
manufacturing  in,  201;  ne- 
cessity for  U.  S.  A.  banks, 
202-204;  characteristics  of 
Chilean  population,  204- 
207;  future  depends  on 
capital,  207-208;  statistics 
of,  365 

Chilean  Exploration  Com- 
pany, 198 

Chile  River,  138 

Chiloe  Island,  190 

Chimbote,  146,  156 

China,  27,  245 

Chinchilla,  186 

Chinese,  76, 134,  204;  cities,  20 

Chiriqui,  79 

Chlorides,  142 

Christina,  22 

Chubut,  233 

Chuquicamata,  167 

Cibao,  50 

Cienfuegos,  17,  28 

Cinchona,  121,  141 

Citrus,  25,  29,  30,  43 

Ciudad  Bolivar,  99,  102,  105 

Climate  of,  Porto  Rico,  42; 
Santo  Domingo,  52;  Ja- 
maica, 60;  Bahamas,  71; 
Panama,  74-75;  Colombia, 
115;  Ecuador,  123;  Are- 
quipa,  139-140;  Peru,  129, 
149-151;  Bolivia,  162;  Chile, 
167;  Argentina,  217;  Uru- 
guay, 272;  Brazil,  291-293 

Clothing,  ready-made,  173 

Coal,  2,  111,  122,  130,  141, 
142,  156,  163,  167,  173,  175, 
189,  196,  199-200,  201,  211, 
231,  266 

Cobalt,  196 


Coca,  123,  141,  145,  158,  163 

Cocaine,  145,  147,  163 

Cochabamba,  164 

Cocoa,  102,  105,  123,  125,  147, 
313,  342 

Cocoanuts,  31,  52,  61,  71,  77, 
78,  79,  80-81,  102,  123,  322 

Coffee,  2,  43,  52,  102,  103,  105, 
110,  115,  121,  124,  141,  145, 
147,  158,  163,  262,  291,  297, 
298,  299,  303,  304,  309,  321 

Colleges,  119,  170, 183,241,  279 

Colombia,  1,  7,  91,  97,  112, 
125,  162,  234,  347;  unports 
and  exports,  112;  feehng 
against  the  U.  S.  A.,  112; 
necessity  of  Spanish  lan- 
guage in,  113-114;  area, 
114;  history,  114;  physical 
characteristics,  114-115;  cU- 
mate,  115;  resources,  115; 
agriculture,  115;  minerals, 
115;  cattle  and  lumber, 
115;  mining  possibihties, 
115;  means  of  communica- 
tion, 116;  waterways,  116; 
Bogota,  116;  railroads,  116; 
a  country  for  tourists,  117; 
social  and  welfare  work, 
117;  statistics  of,  361 

Colon,  city  of,  74, 75,  78, 87, 344 

Colon  market,  Havana,  22 

Colorado,  167,  236 

Columbus,  [12,  36,  48,  50,  70, 
97,  114 

Commercial  Section  of  Chilean 
Government,  197,  200 

Commission  houses,  in  Trini- 
dad, 63-64;  343 

Conception,  190,  200 

Concessions,  in  Venezuela,  107; 
Argentina,  232 

Conductors,  women,  in  Chile, 
179 


INDEX 


391 


Coolies,  62-63 

Copaiba,  102 

Copal,  gum,  294 

Copper,  2G,  32,  47,  51,  102, 
111,  121,  140,  141,  142,  143, 
144,  150,  163,  167,  175,  189, 
196,  19S,  201,  231,  276 

Coquimbo,  199 

Cordova,  353 

Corn,  145,  158,  159,  164,  217, 
218,  225,  230,  258,  276 

Costa  Rica,  79,  94 

Cotton,  65,  102,  121,  129-130, 
141,  144,  145,  146,  158,  262, 
297,  299,  303,  321,  322 

Coupe,  La,  58 

Credit  Foncier,  351 

Credits,  5,  194;  Argentina, 
239-241,  242,  247,  253,  255; 
Brazil,  287 

Cristobal,  74,  88,  102 

Cuba,  36,  37,  41,  49,  60,  73, 
114,  157,  245,  272,  274,  344; 
architecture  of,  10;  igno- 
rance concerning,  11;  history 
of,  10-12;  area  of,  11;  gov- 
ernment of,  12,  20;  geogi-aph- 
ical  and  historical  signifi- 
cance of,  13;  dislike  for 
U.  S.  A.  in  Cuba,  13;  sugar 
and  the  tariff,  14;  geog- 
raphy of,  15-16;  moun- 
tains of,  16;  harbors  of,  16, 
17;  cities  of,  17;  rivers  and 
streams  of,  18;  health  of, 
18;  hunicanea,  19;  death 
rate,  19;  real  estate,  21; 
trade  customs,  21;  methods 
in  business,  22;  imports 
and  exjjorts,  25;  wealth  of, 
25,  26;  forests  of,  26;  min- 
erals of,  25,  26:  government 
land,  26;  po8sibiiitif;H  for 
U.  S.  A.  citizens,  28;    sales 


representatives  for  Cuba, 
29;  immigration  to  Cuba, 
29;  market  gardening  in,  29, 
30;  price  of  land,  29;  ad- 
vantages and  disadvan- 
tages for  settlers  in  Cuba, 
30,  31;  cattle  raising  in,  30; 
living  conditions  in,  30; 
manufacturing,  33;  mer- 
chandising, 33;  investments 
in,  33;  necessity  of  capital 
in,  34;  wages,  34;  future  of, 
35;   statistics  of,  358 

Cuban  legation,  26 

Cuenca,  122 

Curasao,  37 

Curupuy,  231 

Cuvidor,  312 

Cuzco,  138,  140,  142,  344,  345; 
valley  of,  145 

D 

Dairying,  301 

Danish,  Islands,  37;  69,  233 

David,  79 

Democracy,  principles  against 
the  development  of  foreign 
trade,  5 

Denmark,  195,  256 

Diamantina,  300 

Diamonds,  300,  301;  the  Re- 
gent, 300;  Estrella  do  Sul, 
300 

Divi-divi,  102,  103 

Docks,  Buenos  Aires,  221; 
Bahia  Blanca,  225;  Rosario, 
225;   Montevideo,  268 

Dollar  diplomacy,  5 

Dollars,  193,  194,  207 

Dom  Pedro,  305 

Dom  Pedro  II,  305 

Drake,  Sir  Francis,  38 

Dress,  American  idea  of,  46 


392 


INDEX 


Droughts,  229 

Drugs,  102,  125 

Du  Pont,  174 

Dutch,  the,  37,  49,  233,  256, 

279,  304,  313 
Duties,  export,  177 
Dyewoods,  52,  115,  261,  342 
Dynamite,  173 


E 


Earthquakes,  2,  36,  61,  70,  134, 

178,  226 
East  Coast,  2;    fertihty  of,  2; 
size   of,    2,    3;     chmate,    3; 
advantages    and    disadvan- 
tages, 2 
East  Indies,  Dutch,  245 
Economic   possibihties,    table- 
lands  of    North,    1;     West 
Coast,  2 
Ecuador,  2,  7,   129,   147,  162, 
234;   sanitary  conditions  of, 
118;    opportunities  in,  118; 
history  of,  118;  constitution 
of,  119;  institutions  of  learn- 
ing, 119;    area,  119;    popu- 
lation, 119;  Guayaquil,  120; 
raih-oads,   120;    river  trans- 
portation,    121 ;     products, 
121;   agricultural,  121;  min- 
erals,    121;      manufactures, 
122;     Quito,     122;     educa- 
tional institutions,  122;  cli- 
mate, 123;   cacao,  123-124; 
Panama   hats,    124;     tagua 
pahns,  125;   commerce,  125; 
future  of,    125;    opportuni- 
ties for  U.  S.  A.  citizens  in, 
126;   statistics  of,  362 
Education,  122,  279,  307 
Egypt,  164,  166,  344,  345 
El  Cerro  Santa  Lucia,  183 
El  Tofo,  199 


Elections,  9.  See  Government 
Electricity,  143,  178,  219,  261; 

opportunities  in,  105 
Electric  roads,  116,  178,   184, 

261,  308 
Electrification  of  railroads,  188 
Embroideries,  231 
Emeralds,  115,  142 
Emperor  WiUiam  II,  322 
England,  41,  64,  106,  125,  144, 

153,  171,  179,  191,  194,  245, 

314,   347.    See  also   Great 

Britain 
EngUsh,  the,  in  So.  Am.,  62, 

66,  134,  136,  174,  179,  182, 

184,  202,  203,  211,  215,  218, 
220,  236,  239,  240,  241,  242, 
246,  247,  255,  257,  271,  281, 
283,  284,  291,  333,  339,  341, 
346,  355,  356.  See  also 
British 

Estradas,  294 

Europe,  180,  181,  189, 191,  194, 
220,  233,  279,  282 

Europeans,  179,  180,  184,  185, 
235,  248,  264,  268,  285 

Exchange,  means  of,  5;  doUar, 
8;  sterling,  8 

Explosives,  173 

Exports  from  U.  S.  A.  to  Cuba, 
25;  of  Santo  Domingo,  52; 
Barbados,  66;  Bahamas, 
71;  Venezuela,  102;  Colom- 
bia, 113;  Ecuador,  125; 
Boh  via,     164;     Chile,     167, 

185,  186,  202;  Argentina, 
228,  233,  249-250,  272; 
Paraguay,  265;  Uruguay,  272 


Failures,  U.  S.  A.  and  Argen- 
tina compared,  243 

Farming,  opportunities  in 
Cuba,  25;  intensive,  186- 


INDEX 


393 


Feathers,  102 
Ferro-vanadium,  142 
Fever,  yellow,  18,  309,  311 
Figs,  190.  201 
Flax,  218,  230 
Florida,  12,  216,  217 
Flour,  102,  125,  130 
Food-stuffs,  125,  185,  186,  218, 

272 
Foreign  Commercial  Guide   to 

So.  Am.,  294 
Forests,  Cuba,  26;   Colombia, 

115;    Peru,    141,    156,    186; 

Chile,    187,    190,    196,   201; 

Argentina,    230,    231,    234; 

Paraguay,    260;     Uruguay, 

276,  277";  Brazil,  294 
Fort-de-France,  37,  68 
Fort  i6cat  ions,     Havana,     24; 

Guantanamo,  25;  San  Juan, 

39 
France,  26,  125,  177,  191,  256, 

294,  314,  318,  347,  350 
Franciscans,  127 
Fray  Rentes,  275,  278 
Freedom,  of  speech,  136;  ships, 

247 
Freezing  plants,  228 
French,  the,  in  So.  Am.,  37, 

49,  68,   113,   1.53,   184,  215, 

233,  239,  242,  255,  256,  265, 

279,  284,  304,  .341,  346 
French  Canal  Company,  74 
Frias,  123 
Fruits,  102,  115,  121,  158,  187, 

196,  201 
Fur,  186,  211 
Furniture,  173 
Fustic,  102 

G 

Galloway,  frigate,  194 
Garden.s,  Hotanical,    135,    189, 
220;   Zoij\i)gwa\,  135,  220 


Gary,  15 

Gas,  172,  178,  219 

Gatun,  Dam,  72;  Lake,  72 

Gaucho,  235,  281 

Georgia,  272 

Germans,  the,  in  So.  Am.,  4, 
53,  85,  94,  109,  136,  148,  1.53, 
174,  176,  179,  180,  182,  184, 
202,  203,  212,  21.5,  220,  233, 
234,  236,  239,  240,  241,  244, 
245,  240,  247,  255,  256,  257, 
264,  265,  279,  281,  291,  333, 
338,  339,  341,  343,  346,  356 

Germany,  26,  106,  125,  160, 
177,  191,  194,  195,  256,  276, 
314,  318,  322,  338 

Ginger,  294 

Glass,  173 

Goats,  272;  skins  of,  102,  121, 
130,  187 

Goethals,  Colonel,  93 

Gold,  26,  47,  .50,  102,  105,  111, 
121,  140,  141,  142,  144,  1.56, 
163,  168,  196,  199,  231,  270, 
300 

Goods,  style  of,  340 

Gorgas,  Colonel,  93,  120 

Government  of,  Cuba,  12,  20 
Jamaica,  60;  Barbados,  64 
Bahamas,  71;  Ecuador,  119 
Peru,  136;  BoHvia,  160,  161 
Chile,  169-171;  Argentina 
236-238;  Uruguay, 279-280 
Brazil,  305-306 

Graft,  9,  85,  236,  341 

Grain,  251 

Granada,  New,  114,  118 

Gran  Chaco,  232 

Granite,  142 

Grape  fruit,  71 

Grapes,  230,  276 

Graphite,  270 

Great  Britain,  20,  148,  177 
See  Enuland 


394 


INDEX 


"  Great  Railway  of  Venezuela," 
104 

Greece,  245,  256 

Greeks,  256 

Grenadine  Confederation,  114 

Growth,  financial  and  eco- 
nomic of  Argentina,  370 

Guano,  141 

Guanta,  102 

Guantanamo,  20,  25 

Guayaquil,  93,  119,  120,  121, 
122 

Guayas,  121 

Guiana,  1;  British,  97 

H 

Hacendados,  273 

Halifax,  216 

Hamilton,  37 

Harbors  of,  Cuba,  16,  17;  Vene- 
zuela, 100;  Brazil,  303 

Harvard  University,  135,  140, 
317,  333 

Hats,  Panama,  124;  straw, 
130 

Havana,  10,  16,  17;  health  of, 
18,  28,  30,  37,  120;  descrip- 
tion of,  19-20;  improvements 
in,  19;  streets  of,  19;  the 
Prado  of,  19;  banks,  20; 
buildings,  20;  suburbs  of, 
20;  size,  20;  hotels,  20; 
density  of  population,  22; 
markets  of,  22;  Central  Park 
of,  23;  Morro  Castle,  24; 
fortifications  of,  24-25 

Hawkins,  Admiral,  38 

Hay,  196 

Hayti,  36,  37,  47;  opportuni- 
ties in,  47,  48;  area  of,  48; 
population  of,  49;  com- 
pared with  Santo  Domingo, 
49-50;  gold   in,   50-51,   55, 


56;  necessity  of  immigra- 
tion, 59,  60 

Health  in  Cuba,  18;  precau- 
tions for,  18 

Hebrews,  234 

Hectares,  251 

Hemp,  125 

Henequen,  25 

Heron  plumes,  102 

Hevea,  295,  296 

Horses,  272 

Hides,  102,  115,  121,  164,  228, 
230,  265 

History  of,  Cuba,  11-12;  West 
Indies,  37;  Santo  Domingo, 
48;  Colombia,  114;  Ecuador, 
118;  Peru,  132,  133;  BoHvia, 
160-161;  Chile,  169-171; 
Buenos  Aires,  217;  Argen- 
tina, 238-239;  Paraguay, 
260;  Brazil,  304,  305 

Holland,  106, 130, 195,  256, 286 

Homesteads,  159,  252 

Honduras,  124 

Honey,  25,  187 

Honolulu,  73 

Horse  racing,  222 

Hotels,  20,  146,  220 

Huarez,  156 

Hudson  Bay,  217 

Hurricanes,  19 


lea,  145 

Iguassu  Falls,  228 

Illinois,  260,  321,  328,  331 

Imataca,  111 

Imbirussa,  299 

Immigration,  149,  152,  172, 
181,  190,  229,  234,  235,  252, 
256,  259,  260,  265,  280,  281 

Imports,  Cuba  from  U.  S.  A., 
25;  Santo  Domingo,  52: 
Barbados,     66 ;      Bahamas, 


INDEX 


395 


Import s,  contit} tied 
71;  Venezuela,  104;  Colom- 
bia, 113;  Ecuador,  125;  Bo- 
livia, 1G3;   Chile,  1S5,  202; 
Paraguay,  264 

Incas,  114,"  lis,  127,  132,  138, 
164,  165,  168,  183,  255,  344 

Independence,  Argentine  Dec- 
laration of,  239 

India,  299 

Indiana,  260,  321 

Indians,  Paraguaj',  3,  263 
Cuba,  12;  Porto  Rico,  41,  50 
Carib,  69;  Venezuela,  100 
Colombia,  114,  116;  Peru 
134,  136,  139,  145,  148 
BoUvia,  160,  162;  Chile 
167,  175,  196,  199,  201 
Strait  of  Magellan,  209,  211 
Argentina,  218;  Uruguay 
270,  280;  Brazil,  291,  295 
300,  304 

Indigo,  65,  261,  294 

Interest,  46,  211,  310,  350 

Inter-Xation,  248,  357 

International,  Banking  Cor- 
poration, 78;  Harvester 
Company,  318 

Investments,  So.  Am.,  4,  5;  in 
Cuba,  33;  Chile,  191;  neces- 
sity for  U.  S.  A.  in  Argentina, 
232,  244;  England's,  245; 
profits  to  be  gained,  346; 
Europeans  and,  346-347;  re- 
lation between  trade  and, 
346-347;  government  and 
municipal  bonds,  347,  348; 
state  bonds,  348;  risks  in 
exchange,  349;  security  of, 
350;  c.-dula.s,  350-352;  real 
estate,  352-354,  355;  neces- 
sity of  respect  for  U.  S.  A. 
government  to  secure,  355- 
357 


Iodine,  177 

Iowa,  352 

Iparia,  146 

Iquilos,  146,  147,  290 

Ireland,  189 

Irish,  236 

Iron,  25,  26,  32,  47,  51,   111, 

121,  125,  140,  167,  175,  196, 

199,  201,  300 
Ironclads,  170 
Irrigation,    2,    144,    145,    146, 

152,  156,  157,  159,  164,  217, 

226,  259 
Islands,    English,    7;    Danish, 

37;  East  Indian,  296 
ItaUan,    187,    227,    233,    236, 

244,  252,  253,  256,  257,  291, 

330 
Italy,  106,  235,  256 
Ivory,  vegetable,  125,  147. 


Jamaica,  7,  36,  37,  42,  71,  76; 
description  of,  60;  area  of, 
60;  government  of,  60;  de- 
velopment of,  60;  raihoads, 
60;  cUmatc,  60;  sugar  on, 
60;  United  Fruit  Company 
in  relation  to,  60-61 ;  Kings- 
ton, 61-62;  price  of  land, 
62 

Japan,  142 

Japanese,  109,  134,  172 

Jerked  Beef,  272,  274 

Jesuits,  304 

Jipijapa,  124 

Jockey  Club,  Buenos  Aires, 
222 

Journey  to.  So.  Am.,  342-343; 
time  of  year  to  make,  343, 
344;  for  business,  343,  3.54; 
for  pleasure,  344;  future  of 
tourist  travel,  345 


396 


INDEX 


Junta  de  Agricultura,  274 
Junin,  Dep't  of,  141 

K 

Kapok,  121 

Kansas,  329,  352 

Kerosene,  102 

Key  West,  16,  25,  216 

Kid  skins,  102,  130 

King  John,  of  Portugal,  305 

Kingston,  36,  37,  61-62 

Kingstown,  69 


Labor  organizations,  possibili- 
ties for,  6 

Labrador,  289    • 

Laces,  231 

La  Guayra,  97,  98,  99,  102, 
103,  104 

Lake  Merim,  278 

La  Nacion,  223 

Land,  cheap,  3;  government 
in  Cuba,  26;  prices  in  Cuba, 
29;  buying  in  Cuba,  30,  33, 
34;  Porto  Rico,  43,  44; 
Santo  Domingo,  58;  Ja- 
maica, 62;  Trinidad,  63;  Ar- 
gentina, 227;  Buenos  Aires, 
227;  Uruguay,  265,  276; 
Brazil,  322,  327;  352-355 

La  Paz,  138,  140,  161,  162, 
163,  164,  165,  344,  345 

La  Plata,  221,  224;  Province 
of,  238;  River,  216,  217, 
225,  272,  278,  281 

La  Prensa,  223 

Latex,  294 

Latin-American  trade  rela- 
tions, 1;  temperament,  24, 
85;  fundamental  character- 
istics of,  86 


Laurel,  Chilean,  187 

La  Vela,  102 

Lead,  121,  141,  142,  156,  196, 
231,  276 

Leather,  125 

Leeward  Islands,  37 

Legere,  151 

Lick  Observatory,  183 

Lignum-vitse,  231 

Lima,  2,  128,  130,  132,  139, 
145,  158,  159,  168,  343;  de- 
scription of,  132-134;  cH- 
mate,  133;  architecture  of, 
134-135;  university  of,  135; 
as  headquarters  for  sales, 
135 

Lime,  142 

Limon,  146 

Linseed,  230,  249,  250,  251 

Lions,  sea,  192,  193 

Lisbon,  285 

Liverpool,  1,  93,  96,  147 

Living,  art  of,  23;  conditions 
of  in  Cuba,  30 

Llamas,  162,  165 

Llanos,  115,  136,  260 

Locusts,  230 

Logwood,  26 

Loja,  122 

London,  73,  96,  222,  241,  285, 
346 

Los  Angeles,  310 

Lota,  189,  190,  191 

Lottes,  45 

Louisiana,  14 

Lowell,  President,  317 

Lucern,  251 

Lumber,  302-303 

M 

Machinery,  102,  163;  opportu- 
nities in,  109;  packing  of, 
130,  131 


INDEX 


397 


Mackenzie  Collepe,  310,  334 

Madrc  de  Dios  River,  146 

Magellan,  Strait  of,  93,  1S7, 
190,  191;  scenie  features  of, 
209;  physical  characteris- 
tics of,  209,  210;  Punt  a 
Arenas  on,  210-212;  class 
of  goods  desired  in,  211- 
213;  future  of  depends  upon 
wool  industry,  213 

Magnesium,  196 

Mahogany,  25,  26,  52,  113,  293 

Maine,  16 

Maine,  The,  13 

Maize,  164,  249,  250,  251 

Malaria,  18 

Manana,  182,  204,  224 

Mandarins,  230 

Mandioca,  297,  298,  342 

Manganese,  26,  276 

Mango,  26 

Mangrove,  121 

Manihot,  296 

Manufactures,  of  East  Coast, 
3;  Cuba,  33;  Santo  Do- 
mingo, 52;  Venezuela,  106; 
Ecuador,  122;  Arequipa, 
140,  145,  146;  Chile,  173, 
175,  201;  Argentina,  231, 
251;  Paraguay,  261;  Uru- 
guay, 277;  Brazil,  301-302 

Mapajo,  261 

Maracaibo,  99,  102,  103,  HI 

Maninon  River,  146 

Marbles,  142 

Mar  del  Plata,  225 

Marie  Galante,  38 

Market  Central  Produce,  230 

Markets,  Havana,  22,  23; 
Valparaiso,  179 

Martinique,  37,  67,  113;  moun- 
tains of,  67;  St.  Pierre,  67; 
Fort-fJe-France,  08;  poi)u- 
lation  of,   68;    scenery,   68; 


roads,  68;  opportunities  in, 
68 

Maryland,  271 

Massachusetts,  16,  166,  240, 
281 

Matanzas,  10,  17,  20,  28 

Matto  Grosso,  State  of,  263 

Mayagucz,  39 

Meat,  217,  230;  trade  of  Ar- 
gentina, 249 

Medicines,  102,  125 

Meiggs,  145 

Mendoza,  226,  346 

Mendoza,  Pedro,  218,  226 

Menocal,  M.  G.,  Pres.  of  Cuba, 
32 

Mercantile  opportunities  in 
Cuba,  33 

Mercedes,  278 

Merchandise,  packing  for  So, 
Am.,  130-131 

Mercury,  121,  142 

Metric  system,  245 

Mexico,  9,  11,  166,  216,  245, 
256,  257,  283,  296,  324 

Misti,  El,  140 

Middle  class,  235,  330,  357 

Milkmen  in  Brazil,  340 

Mihtarists  in  Peru,  127 

Minas  Geraes,  290,  299,  300, 
301,  326 

Minerals  of  West  Coast,  2; 
Cuba,  32;  Santo  Domingo 
and  Hayti,  50-51;  Barba- 
dos, 65;  Venezuela,  100; 
Colombia,  115;  Ecuador, 
121-122;  Peru,  141-142, 
156;  Bolivia,  163;  Chile, 
196,  198;  Argentina,  231; 
Paraguay,  265;  Brazil,  299- 
301 

Minneapolis,  288 

Missionaries,  Santo  Domingo, 
55;  127 


398 


INDEX 


Mississippi,   3,    14,    116,    216, 

353 
Missouri,  260 
Mitti,  Sefior  Georg,  223 
Mocha,  49 
MoUendo,  137,  138,  145,  161, 

165,  344 
Molybdenum,  142 
Monazite,  313 
Money,  6,  7;  different  systems 

of,    7;    necessity    for   stan- 
dardization, 8;  Chilean,  193; 

depreciation  of,  349 
Money-making,      possibilities, 

Argentina,  248-249;    Brazil, 

289 
Monroe    Doctrine,    184,    283, 

286 
Montaiia,  146,  147,  157 
Montevideo,    254,    267,    268, 

269,  277,  278,  279,  281,  285, 

288,  308,  343 
Montt,  170 
Moreira  Cezar,  312 
Morgan,  Ambassador,  317 
Morro  Castle,  10,  24 
Morro,  El,  165 
Mortality  rate  of  Cuba,  19 
Mt.  Meiggs,  145 
Mt.  Pelee,  67,  68 
Mt.  Washington,  139 
Mules,  272 
Mtiller,  Dr.  Lauro  Severiano, 

316,  317,  320,  321,  332 
Mummies,  165-166 
Museums,  183,  219 

N 

Napoleon,  304 

Nassau,  70 

Nations  of  So.  Am.,  2 
National  Cash   Register  Co., 
318 


Naudubay,  231 

Nebraska,  329,  352 

Negroes,  12,  41,  49,  62;  com% 
pared  with  coohes,  63;  in 
the  Barbados,  64,  65;  Mar- 
tinique, 68;  St.  Thomas,  69; 
Venezuela,  99 ;  Colombia, 
116;   Chile,  204,  291 

Nevadas,  123 

New  England,  16,  74,  162, 
203,  242,  257,  258,  271,  337 

New  Hampshire,  16 

New  Mexico,  319 

New  Orleans,  73, 158, 288,  289, 
315 

Newport,  225 

New  Providence,  70 

New  York,  10,  43,  52,  70,  73, 
93,  147,  194,  203,  213,  221, 
222,  226,  233,  236,  246,  285, 
288,  318,  333,  338,  341,  344, 
346 

Newspapers,  184,  219,  223, 
224,  230,  285 

Niagara,  117,  228 

Nickel,  196 

Nile,  163 

Nitrates,  2,  142,  165,  167,  170, 
172,  173,  175,  176,  177,  178, 
185,  186,  193,  195,  196-197, 
201,  208 

North  Dakota,  271 

Northers,  18 

Norway,  187,  256 

Nueva  Palmira,  278 

Nueva  Paysandu,  278 

Nuevo  Berlin,  278 

Nuts,  125,  294 

O 

Oats,  217,  218,  230,  249,  250 
Obispo  Street,  Havana,  19 
Ojjicial  Gazelle,  109 


INDEX 


399 


Officials  in  Cuba,  31 

Officin:is,  17(3 

Ohio,  232 

Oil.    See  Petrolettm 

Olives,  1.5S,  201,  230 

Opera    House,    Buenos   Aires, 
223 

Opportunities,    sales,    2;     for 
manufacturers,      merchants 
and  investors  in  Cuba,  25 
for  Americans  in  Cuba,  32 
33;     in    West    Indies,    37 
Porto  Rico,  38;    for  manu 
facturers   in  Cuba,  44,    45 
Hayti,  47,  48;  Barbados,  6G 
U.  S.  A.  citizens   in   Barba- 
dos,   66;     Martinique,    68 
Panama,  89;  Venezuela,  109 
Ecuador,  118,  126;  Bolivia 
163;  ChUe,  191;  Paraguay 
265;  to  buy  in  So.  Am.,  342 

Oranges,  26,  29,  230 

Oregon,  216 

Orinoco,  River,  99,  111 

Oroya,  146 

Oroya  Railroad,  145 

Oruro,  161,  164 

Osomo,  190 

Ostrich  breefling,  232 

Otis  Elevator  Co.,  318 

Ouro  Preto,  307 

Oysters,  187 

Ozama  River,  48 


Pacific,  Coast,  178,  216;  Ocean, 

im,  238 
Palace,  Presidential  of  Cuba, 

31 
Palm,  achilean,  187;  oil,  322 
Pampatar,  102 
Panama,   City  of,   74,  75,  76, 

78;  population  of,  77;  North- 


American  interests  in,  78; 
suburlis  of,  96,  135 

Panama,  Repubhc  of,  71,  72, 
113,  120,  124,  128,  146,  344, 
345;  the  Canal,  72;  distances 
saved  by,  73;  area,  73; 
distance  from  U.  S.  A.,  73; 
shape  of  country,  74;  Canal 
Zone  in,  74;  difficvdties  over 
situation,  74;  climate,  74- 
75;  rainfall,  75;  old  condi- 
tions in  and  new,  75;  death 
rate,  75;  importance  of,  76; 
merchants,  character  of  pop- 
ulation, 76;  cemeteries,  76; 
industries,  77;  altitude  of 
land,  77;  North  Americans 
in,  77,  78-80;  cocoanut  in- 
dustry' in,  80-83;  attitude 
toward  North  Americans, 
84;  German  methods  in, 
85;  differences  between  Pan- 
ama and  U.  S.  A.,  87-88; 
reasons  for  studying,  88-89; 
opportunities  for  U.  S.  A. 
citizens  in,  89;  history  of 
Canal,  91;  agreement  be- 
tween U.  S.  A.  and,  92;  im- 
provements since  1903,  93; 
future  of,  93;  disadvantages 
of,  94;  railroads,  95;  statis- 
tics of,  359 

Pan  American  Union,  150,  323, 
336 

Para,  288,  292,  295,  316,  326, 
355 

Parana  River,  218,  226,  228, 
232,  261 

Parana,  State  of,  263,  264,  302 

Paraguay,  3,  7,  162,  228,  239, 
2.56,  257,  278,  347,  353; 
situation  of,  260;  oppor- 
tunities in,  260;  area,  260; 
physical    characteristics    of, 


400 


INDEX 


Paraguay,  continued 

260;   history  of,  261 ;   rivers 
of,  261;    Asuncion,  261;  re- 
sources of,   261;    industries 
of,  262;  tea  or  yerba  mat6, 
262-265;    trade  relations  of, 
265;    opportunities  for  set- 
tlers, 265;   forests  and  min- 
erals, 265-266;   statistics  of, 
367 
Paraguay  River,  228,  232,  261 
Paraguay  tea.  SeeYERBAMATE 
Paris,  220,  222,  285,  346 
Park  Palermo,  220 
Parks,  183,  220,  254 
Pasteur,  310 
Patagonia,  167,  209,  213,  216, 

225,  232 
Payata,  129-130,  144,  146 
Paysandu,  278 
Peaches,  201 

Pearls,  142;   fisheries,  100 
Pedregal,  79 
Pekin,  162 

Penn,  Admiral,  36;  William,  36 
Pennsylvania,  216 
Pepper,  black,  294 
Pernambuco,    304,    307,    308, 

313,  314,  332 
Peru,  2,  6,  7,  118,  132,  162, 
165,  170,  171,  174,  186,  195, 
198,  234,  255,  276,  290,  296, 
345,  347;  a  backward  coun- 
try, 127;  shape,  127;  phys- 
ical characteristics,  127- 
128;  population  of,  128; 
compared  with  California, 
127-128;  coast  of,  128; 
climate,  129;  Payata,  129- 
130;  CaUao,  130;  difficul- 
ties in  trading  with  U.  S.  A., 
130-131;  history  of,  132, 
133;  boundaries  and  divi- 
sions of,    133;    Lima,    133- 


135;  education,  135;  re- 
hgious  question  in,  135; 
characteristics  of  people  and 
government,  136;  llamas, 
137;  alpacas,  137;  Mol- 
lendo,  137-138;  Arequipa, 
138-140;  resoiirces  of,  140- 
141;  minerals  of,  140;  agi'i- 
culture,  141;  forests,  141; 
mining  in,  141-143;  irriga- 
tion, 144;  manufactures, 
145;  railroads,  145-146;  ho- 
tels, 146;  need  of  capital, 
147;  gains  of  by  Panama 
Canal,  147;  commerce  on 
rivers  of,  147-148;  com- 
merce, 148;  prospects  for 
trade,  148;  need  of  immi- 
gration, 149;  church  and 
state,  149;  government, 
149-151;  revolutions  in, 
150,  152;  U.  S.  A.  sins  of 
omissions  towards,  152-154; 
changes  necessary  in,  155- 
157;  national  problems  of, 
157;  future  of  sugar  in,  157- 
158;  future  of  cotton  in, 
158;  necessity  of  capital  for, 
159;   statistics  of,  363 

Peruvian  Corporation,  133 

Peso,  7 

Petitgrain,  oil  of,  262 

Petroleum,   51,   63,    115,    130, 
141,  142,  156,  186,  231,  276 

Philadelphia,  75,  203,  236,  246, 
317,  346 

Phihppine  Islands,  245 

Pillado,  Ricardo,  249 

Pineapples,  25,  71 

Pitch,  Trinidad,  63 

Piura,  129,  144,  146;  manufac- 
tures of,  130 

Pizarro,  118,  127,  128,  132,  133, 
138,  168,  238 


INDEX 


401 


Plague,  18,  120 

Plata  de  la.     See  Rio  de  la 

Plata 
Plants,  medicinal,  115 
Platinum,  115,  121 
Plaza,  de   la,    Seuor  Victorio, 

Pres.,  243 
Plj-mouth,  England,  38;  U.S.A., 

36 
Poles,  2G4 
Political  conditions,  2,  8.    See 

also  GOVEUNMENT 

Polk,  President,  12 

Pomegranates,  196 

Pompeii,  67 

Ponce,  39 

Ponce  de  Leon,  38 

Population  of,  West  Indies, 
37;  Porto  Rico,  41;  Santo 
Domingo  and  Hayti,  49; 
Trinidad,  62;  Barbados,  64, 
65;  Panama,  76;  Venezue- 
la, 99,  100;  Ecuador,  119; 
Peru,  136;  BoHvia,  160, 
162;  Chile,  204-207;  Ar- 
gentina, 217,  234;  attitude 
of  Argentina's  toward  for- 
eigners, 234;  characteristics 
of  in  Argentina,  252-255; 
Brazil,  2S9,  291 

Portales,  Diego,  169 

Porras,  Pres't,  87 

Port-au-Prince,  37,  48,  55;  de- 
scription of,  56,  57 

Port  of  Spain,  37,  62,  63 

Port  Royal,  36 

Ports,  cliief  of  West  Indies,  37 

Porto  Rico,  36,  37,  272;  a 
health  and  winter  resort, 
38;  advantages  of,  38,  39, 
42;  opportunities  for  set- 
tlers, 39;  wages,  39;  towns 
in,  41;  density  of  popula- 
tion    in,     41;      feeling     in 


against  U.  S.  A.,  41;  phys- 
ical characteristics  of,  42; 
climate,  42;  contrasted  with 
Santo  Domingo  and  Hayti, 
42,  43;  price  of  land,  43; 
mineral  wealth  of,  43;  fu- 
ture of,  44 

Portugal,  256, 257, 271, 288, 305 

Portuguese,  113,  256,  271,  284, 
291,  304 

Postal  System,  119;  Union,  53 

Potatoes,  158,  276 

Potosi,  164 

Pound  sterling,  6,  8 

Powder,  173 

Prado,  Havana,  19 

Press,  Associated,  185 

Princeton,  333 

Privilege,  law  of,  107-108 

Pubhc  Buildings,  San  Juan, 
40;  Chile,  170 

Puerto  Cabello,  99,  101,  102, 
103 

Puerto  Plata,  53,  55,  59 

Puerto  Sucre,  102 

Puno,  161 

Punta  Arenas,  186,  187,  191, 
210,  216;  description  of, 
210;  bank  of,  211;  trade  of, 
211-212;   future  of,  213 

Punta  Castle,  24 

Punts  de  Lobos,  200 

Q 

Quebracho,  231 

Quillai,  187 

Quinine,  121 

Quito,  118,  119,  122,  123 

R 

Ragra  mine,  142 
Railroads,     Santo     Domingo, 
53;    Jamaica,  60;    Panama, 


402 


INDEX 


Railroads,  continued 

85;  Venezuela,  104;  Colom- 
bia, 115,  116;  Ecuador,  120- 
121;  Peru,  145,  146,  147, 
156;  Bolivia,  160,  165,  170; 
Longitudinal,  175;  Trans- 
Andean,  184,  211;  Chilean, 
188;  Argentina,  226,  227, 
230,  231,  232,  252;  Para- 
guay, 260,  265;  Uruguay, 
266,  271,  276,  277;  Brazil, 
307,  308,  309,  319,  322 

Raisins,  196 

Range,  Coast,  166,  176,  196 

Rates,  freight,  333 

Rehgion,  Santo  Domingo,  55; 
Peru,  135 

Republic,  use  of  word,  9 

Republic,  Oriental,  of  Uru- 
guay, 271 

Resin,  261 

Resources,  Colombia,  115;  Ar- 
gentina, 228-229;  Brazil, 
319-321 

Revolutions,  8,  9,  21,  49,  98, 
143,  148,  150,  152,  168,  170, 
177,  236,  237,  305 

Rhode  Island,  16,  281 

Rice,  102,  125,  144,  158,  230, 
297 

Rimac  River,  133 

Rio  Colorado,  232 

Rio  de  Janeiro,  3,  183,  224, 
288,  301,  302,  303,  304,  305, 

307,  308,  311-312,  314,  332, 
339,  340,  341,  343,  346;  state 
of,  301,  326,  354;  Light  and 
Power  Company,  302,  318 

Rio  de  la  Plata,  232,  238 
Rio  Grande  do  Sul,  288,  301, 

308,  322 

Rio  Grande,  State  of,  263 
Rio    Negro,    233,    276,    278; 
Province  of,  231 


Rio  Piedras,  40 

Rivera  Station,  278 

Riviera,  French,  272 

Root,  Ehhu,  88,  317 

Ropes,  231 

Rosario,  221,  225,  226,  346 

Rosas,  218 

Rosewood,  293 

Rubber,    102,    103,    110,    115, 

121,  125,  141,  147,  294-295, 

296,  297,  315,  319,  321,  326, 

342 
Rugs,  173,  231 
Rural  Association  of  Uruguay, 

274 
Russia,  27,  245,  256 
Russians,  256 

S 

Sagua  la  Grande,  17 

Sahara,  189 

Saladero,  275 

Salar  Grande  de  HuaniUos,  200 

Sales  opportunities,  of  West 
Coast,  2;  Venezuela,  109- 
110;  BoUvia,  162 

Salesmen  for  Cuba,  33;  criti- 
cised, 182;  necessary  for  So. 
Am.,  287-288;  mistakes  of, 
328 

Sahtral,  146 

Salt,  51,  102,  130,  142, 200,  231 

Salto,  278 

Samples,  337 

San  Bias,  79 

San  Diego,  128,  310 

San  Francisco,  73,  178 

Sanitary  conditions,  2;  Cuba, 
18;  San  Juan,  40;  Santo 
Domingo,  50;  Ecuador,  118; 
Guayaquil,  120;  Santiago 
and  Valparaiso,  183;  Brazil, 
309 


INDEX 


403 


San j on.  Peace  of,  12 

San  Juan,  Bautista,  37,  38 
description  of,  39-41;  forti 
fications  of,  39;  streets,  40 
public  buildings,  40;  water 
supply,  40;  plazas,  40 
architecture,  40;  sanitary- 
conditions,  40;  stores,  41 

San  Lorenzo,  130 

San  Martin,  General,  239 

San  Salvador  River,  278 

Sanshaz,  53 

Santa  Catharina,  State  of,  263, 
316,  322 

Santa  Clara,  17 

Santa  Cruz,  104 

Santa  Fo,  227 

Santa  Lucia  River,  269 

Santa  Rosa,  278 

San  Thomas,  Hospital,  78 

Santiago  dc  los  Caballeros,  53 

Santiago  de  Chile,  2,  167,  168, 
178,  182,  183,  188,  189,  190, 
194,  203,  205,  224,  346,  348, 
349,  350 

Santiago  dc  Cuba,  10,  16,  17, 
20,  28,  30 

Santiago  del  Estero,  Province 
of,  230 

Santo  Domingo  City,  36,  37, 
55,  58 

Santo  Domingo,  Republic  of, 
37;  opportunities  in,  47; 
disadvantages  of,  48;  his- 
tory of,  48;  area,  48; 
mountains,  48;  population 
of,  49;  revolt  of  negroes  in, 
49;  contrasted  with  Hayti, 
49-50;  minerals,  50-51;  ag- 
ricultural products,  51;  for- 
ests, 52;  manufactures,  52; 
imports  and  exports,  52; 
climate,  52;  taxes,  52;  atti- 
tude   toward    capital,     52; 


means  of  communication, 
52-53;  railroads,  53,  54; 
opportunities  for  settlers, 
54;  Umits  and  possibilities 
for  the  island,  54-55;  reli- 
gion of,  55;  education,  55; 
price  of  land  in,  58;  neces- 
sity for  immigration,  59 

Santos,  308,  309,  320,  332 

Sao  Paulo,  4,  293,  301,  302, 
307,  308,  310,  311,  313,  320, 
328,  332,  334,  346,  348,  354 

Sao  Paulo,  State  of,  301,  326, 
328,  348 

Sarrapia  tree,  104 

Satinwood,  293 

Scarborough,  37 

Schools,  31,  38,  119,  170,  183, 
219,  305,  307,  331 

Seab,  186 

Sechura,  142 

Selling  in  So.  Am.,  4 

Sheep,  121,  187,  225,  228,  272, 
273 

Sheep  raising,  2 

Ships,  foreign,  freedom  from, 
necessary  for  U.  S.  A.,  5 

Shoes,  130 

Sierra  Maestra,  16 

Silver,  47,  51,  115,  121,  140, 
141,  142,  143,  144,  156,  163, 
164,  168,  172,  196,  199,  231 

Social  work,  117 

Society  in  Bahamas,  71 

Sol,  0,  7 

Solis,  Juan  de,  238 

Solis  theater,  269,  270 

Silk  culture,  232 

Singer  Sewing  Machine  Co.,  336 

Slavery,  299 

Soriano,  278 

Soufriere,  69 

Soutli  America,  possibilities 
of,  1;   nations  of,  1;   money 


404 


INDEX 


South  America,  continued 
of,  6;  truth  about,  9;  du-ec- 
tion   from    North   America, 
76;    attitude   of  people   of 
toward  U.  S.  A.,  283-284 

Spain,  10,  24,  26,  36,  37,  50, 
8"^,  128,  168,  182,  235,  256, 
271,  281,  305 

Spanish,  10,  41,  49,  62,  99,  100, 
113,  114,  118,  134,  149,  151, 
168,  204,  218,  233,  234,  235, 
236,  256,  261,  265,  273,  279, 
280,  285 

Spanish  Main,  114 

Spanish  War,  42 

Spanish  language,  importance 
of,  5;  labor  should  insist 
upon  study  of,  6 ;  for  a  sales- 
man, 29;  Peru,  114,  152-153, 
154;  284 

Spices,  102 

Sponges,  71 

Standard  Oil  Co.,  60,  318,  336 

Stars  and  Stripes,  221,  279 

Statistics,  of  money,  6;  of  com- 
merce, 11;  West  Indies,  37; 
necessary  for  fair  judgments, 
214;  failures  in  U.  S.  A. 
and  Argentina,  243;  Eng- 
land's investments,  245;  Ar- 
gentina's trade,  249-250; 
agriculture  in  Argentina, 
251;  Argentina's  immigi-a- 
tion,  256;  Argentina's  com- 
merce, 256;  real  estate,  354; 
Cuba,  358;  Panama,  359; 
Venezuela,  360;  Colombia, 
361;  Ecuador,  362;  Peru, 
363;  Bohvia,  364;  Chile, 
365;  Argentina,  366,  370- 
382;  Paraguay,  367;  Uru- 
guay, 368;   Brazil,  369 

Stock-raising,  93,  301 

St.  Augustine,  39 


St.  George's  Grenada,  37 

St.  John,  37 

St.  Pierre,  67 

St.  Thomas,  68-69 

St.  Vmcent,  69-70 

Steamships,  184,  233,  253, 
278,  279,  282,  333 

Stimson,  Ambassador,  250 

Stone,  lime,  276;  sand,  276; 
semi-precious,  276 

Suburbs  of,  Havana,  20,  30; 
Panama,  96 

Sucre,  the,  7;  city  of,  132,  164 

Sugar,  in  Cuba,  13,  25,  26,  32, 
43;  Santo  Domingo,  52; 
Jamaica,  60;  Barbados,  64- 
65;  St.  Vincent,  70;  Pan- 
ama, 93,  95;  Venezuela,  102, 
105,  110;  Peru,  141,  144, 
146,  157-158;  Argentina, 
230;  Paraguay,  261;  Brazil, 
297,  299 

SuUana,  146 

Sulphur,  121,  175,  200,  231 

Sweden,  245,  256 

Swedish,  233 

Swiss,  256 

Sydney,  73 

Syrians,  256,  291 


Table  lands  of  the  north,  1; 

possibilities  of,  1;   prospects 

of  trade,  2 
Tacon,  22 
Tagua  pahns,  125 
Tambo,  146 
Tannin,  187,  265 
Tapioca,  294 
Tariff  legislation,  of  U.  S.  A. 

against  Cuba,  13 
Tariff    policy,    necessary    for 

U.  S.  A.,  4,  15;   of  England 

and  Germany,  4 


INDEX 


405 


Tariffs  of  Brazil,  303,  304,  324- 

327 
Tasajo,  272 
Taytao  Peninsula,  100 
Taxes,    Santo    Domingo,    52; 

import  and  export  of  Chile, 

191 
Texas.  242,  272 
Tea,  158.  262 
Tea,      Paraguay,      230.     See 

Yerba  Mat6 
Telegraph.^.  53,  105,  116,  119, 

150,  172,  184 
Telephones.  53,  117,  119,  184 
Templades,  123 
Temuco,  190 
Tequendama,  117 
TextUes,  102, 125, 130, 148, 163 
Theaters,  183 
Thorium  silicate,  313 
Tierra  del  Fuego,  180,  209,  211 
Tierras  Cahentes,  123 
Timber,  201,  230,  231,  265 
Tin,  163,  164,  186,  231,  276 
Tipa,  231 
Titane,  231 
Tititaca,  Lake,  161 
Tobacco,  25,  29,  43,  52,  95,  121, 

145,  158,  230,  261,  276,  297 
Tobogo,  37 

Tonka  beans,  102,  104,  294 
Tonnage    of    Argentine    com- 
merce, 256 
Topazes,  .301 
Torquilla  straw,  124 
Torrefaction,  263 
Tortola,  37 
TourrnaUnes,  301 
Tourist.s,  attractions  for,  117, 

163,  1(>4,  228,  344-.345 
Trade      policy,      foreign      of 

U.  S.  A.,  4,  15 
Trade   prospects,    table   lands 

of  north,  2 


Trade  relations  of  U.  S.  A.  with 
Latin  America,  1;  Cuba,  11 

Trading,  difficulties  of,  131- 
132 

Trade  Relations,  mistakes  in 
U.  S.  A.,  335;  what  the  de- 
velopment of  means  to 
U.  S.  A.  prosperity,  335, 
336;  mistakes  of  U.  S.  A. 
merchants,  337;  independ- 
ence of  U.  S.  A.  manufac- 
turers, 338-339;  the  South 
American  point  of  view,  339- 
340;  opportunities  for  man- 
ufacturers of  specialties,  340; 
government  officials  of  So. 
Am.,  340-341;  U.  S.  A. 
neglect  of  banking  possibih- 
ties,  341-342;  opportuni- 
ties to  buy,  342 

Trans- Andean  Railroad,  184, 
211 

Treaty  between  Cuba  and 
U.  S.  A.,  20,  21 

Trinidad,  37,  42,  62;  situation 
of,  62;  population  of,  62 
coohe  system  in,  62-63 
Pitch  Lake  in,  63;  oil,  63 
price  of  land  in,  63;  com- 
mission houses  in,  63-64 

Tropics,  disadvantages  of,  30, 
98;  effect  of,  293 

Truth  about  So.  Am.,  9 

Tucuman,  239 

Tungsten,  142,  156,  157 

Turkey,  245 

Turtles,  71 

U 

Ucayali,  146 

United  Fruit  Company,  60-61, 

78 
United  Kingdom,  256 


406 


INDEX 


United  Mexican  States,  237 

U.  S.  A.  intervenes  in  Cuba, 
12;  tariffs  injure  Cuba's 
sugar,  14;  treaty  with  Cuba, 
20,  21;  citizens  in  Chile,  181, 
191;  in  Argentina,  237,  256; 
commerce  with  the  Argen- 
tine, 220,  245 

United  States  of  Brazil,  237; 
Venezuela,  237 

University,  of  Lima,  135;  Chile, 
195;  Montevideo,  269,  270; 
State  of  New  York,  310 

United  States  Steel  Co.,  318 

United  Shoe  Machinery  Co., 
336 

Uruguay,  3,  7,  239,  256,  264, 
343,  347,  353;  Montevideo, 
267-270;  size  of,  270-271; 
histoiy  of,  270,  271;  growth 
of,  271;  rivers,  272;  cU- 
mate,  272;  agriculture,  272; 
cattle,  272;  sheep,  273; 
improvements  in  agi'icul- 
ture,  274;  small  farms  in, 
274;  meat  industry,  274, 
275;  agricultural  products, 
275-276;  minerals,  276;  for- 
ests, 276,  277;  manufactur- 
ing, 277;  railroads  and 
waterways,  277-278;  steam- 
ship hnes,  278-279;  educa- 
tion, 279;  government,  279- 
280;  population  of,  280- 
281;  immigration,  282;  lack 
of  trade  with  U.  S.  A.,  282; 
future  of,  286;  statistics,  368 

Usono,  317 

V 

Valdivia,  168,    182,    18.3;    city 

of,  190 
Valencia,  99,  101 


Valparaiso,  2,  73,  76,  93,  135, 
171,  178,  183,  188,  189,  194, 
195,  209,  254,  343,  348 

Vanadium,  142 

Vancouver,  73 

Van  Dyck,  139 

Vanilla,  52,  102 

Vegetable  ivory,  125,  147 

Vegetation  of  Brazil,  289 

Venezuela,  1,  7,  94,  162,  234, 
347;  situation  of,  97;  dis- 
advantages of  its  tropical 
climate,  98;  size,  98;  phys- 
ical characteristics,  98-99; 
commercial  possibiUties  of, 
99;  population  of,  99;  cities, 
99;  harbors,  100;  customs 
regulations,  100;  character 
of  population,  100;  occu- 
pations, 100;  agriculture, 
100;  mining  and  fisheries, 
100;  cattle  raising,  101; 
proximity  of  markets,  101; 
agricultural  and  forest  prod- 
ucts, 102;  exports  and  im- 
ports, 102;  ports  to  enter 
for  trade,  103;  sugar  indus- 
try, 103;  transportation 
facilities,  104;  water  powers, 
104;  raihoads,  104;  wagon 
roads,  104;  telegraphs,  105; 
opportunities  for  automo- 
biles and  electricity,  105- 
106;  manufactures,  106; 
foreign  trade  and  steamship 
lines,  106;  financial  condi- 
tion, 106;  failure  to  protect 
capital,  106;  concessions, 
107;  law  of  privilege,  107- 
108;  sales  opportunities, 
109-110;  opportunities  in 
general  merchandising,  110; 
immigration,  need  of,  112; 
statistics  of,  360 


INDEX 


407 


Vermont,  16 

Vicunas,  163 

Vienna,  222 

Mlla  Dolorosa,  26{>-270 

Vina  del  Mar,  179,  20.5 

Vinevards,  141,  158,  187,  106, 

227 
Virgin  Islands,  37,  68-70 
Von  Humboldt,  290 

W 

Wogps,  in  Cuba,  34;  Porto 
Rioo,  39;  Chile,  185 

War,  Ten  Years',  12;  Euro- 
pean, 14 

Washington.  8,  26,  150,  184, 
224,  225,  311,  330,  356; 
state  of,  216 

Water  power,  2,  104,  143,  201, 
231,  265,  321 

Water  wavs,  1 16,  121 ,  232, 277, 
289-290,  319,  320 

Wax,  187 

Weaknesses  of  Latin-Ameri- 
cans, 204,  205,  2m 

West  Coast,  economic  possi- 
bilities of,  2 

Western  Hemisphere,  36,  48, 
55,  218,  316 


West  Indies,  15,  36,  60,  61,  62. 
63,  70,  291,  327;  statistics 
of,  37;  area  of,  37;  popu- 
lation of,  37;  discovered  in, 
37;  chief  ports  of,  37 
Wheat,  145,  217,  218,  230,  249, 

2.50.  251,  258,  276 
Wheelm-ight,  WiUiam,  221 
Willcmstad,  Cura^oa,  37 
Windward  Islands,  37 
^^'ines,  102,  187,  196,  227 
Wire,  barbed,  125 
Wood,  Panama,  187 
Wool,  164,  201,  211,  213,  228. 

230.  273 
"Wool"  cotton,  144 
Worcester,  Dean  C,  83 
Wright,  Marie  Robinson,  299 


Yale  University,  333 
Yankee,  174,  315 
Yaqui  River,  50 
Yellow  fever,  309,  311 
Yerba  mat6,  or  Paraguay  tea, 
230,  262-265,  342 


Zeballos,  Pedro  de,  239 


Date  Due 

APP 

8  1980 

RECD  M^ 

R  1  7  1S30 

1 

PRINTED    IN 

U.S.A.              CAT 

.    NO.    24    161 

& 

1 1 II  111  III  III  mill  nil  nil  III  iiMiiniiii  nil  II  nil  I II 
3  1970  00238  1447 


AA      000  316  708 


